Business Expense Ideas
Posted by Tax Man - 11/12/11 at 12:12 pmIf all you had to do to save more in taxes was to write on receipts, would you do it? If a car mileage log was able to reduce your tax bill, could you manage to keep one? It’s that simple.
A meal is 100% deductible if it has a business purposes. When you take a potential client out to a meal, save the receipt, note the tip paid, who attended and the business purpose on the receipt. Otherwise the meal is only 50% deductible. If you keep a log of your car mileage and part is for business, you may be able to expense part of it. The mileage rate changes periodically, and is currently 55 ½ cents per mile. Let’s say you have 1000 business miles in a month. That is over $500 in tax deductible business expense.
An annual stockholders’ meeting must be held by all corporations. So if you have one of two types of companies, you may choose where the meeting is to be held. S corps and c corps may choose to fly the corporate officers to the designated meeting location and pay for their hotel. You and your spouse may be the corporate officers and only shareholders. Where you choose to hold the annual meeting is up to your discretion.
Once a year you may rent a room to hold a business entity function. Obtain two written quotes from local hotels for the cost of a meeting room. If you have a similar room in your home, rent It out to the business at the going rate. You have two valid quotes.
At the very least, you should keep all the receipts incurred by your business entity yearly. At tax year end, at least the expenses are present. And sorting them will be a lot easier than trying to remember all the expenses paid without receipts.
