| As we enter tax season, taxpayers begin to become | | | | · Promotional costs that create goodwill such as |
| very interested in deductions. Following are a few that | | | | sponsoring a youth team |
| you may be entitled to claim. | | | | · Business association dues |
| Deductible Expenses | | | | · Business-related magazines |
| · Office expenses | | | | · Casualty losses |
| · Rent or lease payments | | | | · Beverage services |
| · Advertising | | | | · Credit bureau fees |
| · Costs of goods sold | | | | · Taxi fares |
| · Insurance costs | | | | · Telephone calls made on trips |
| · Utilities | | | | · Self-employment tax [if applicable] |
| · Payments to independent contractors [file form | | | | Sales Tax Deduction Option |
| 1099] | | | | The American Jobs Creation Act of 2004 provides all |
| · Accounting fees | | | | taxpayers with the option to claim a deduction for |
| · Legal fees | | | | state and local sales taxes instead of state and local |
| · Communication expenses | | | | income taxes. If you purchased a high cost item during |
| · Credit Card Interest for business charges | | | | 2004, you may find that the total sales tax you pay |
| · Travel expenses | | | | far exceeds your state income tax payment. If so, you |
| · Vehicle expenses | | | | should determine whether you should claim a larger |
| · Business-related meals and entertainment | | | | deduction by using the IRS Optional State Sales Tax |
| · Uncollected receivables | | | | Tables found in IRS Publication 600. |
| · Bank fees on business accounts | | | | The new sales tax deduction is a windfall for |
| · Interest payments on notes | | | | taxpayers in Alaska, Florida, Nevada, Texas, |
| · Excise and fuel taxes | | | | Washington, South Dakota and Wyoming. These |
| · Employment taxes | | | | states do not tax the income of their residents, which |
| · Real estate tax paid on business property | | | | makes the sales tax deduction a very valuable |
| · Special local assessments for repairs or | | | | deduction indeed! Regardless, taxpayers in all states |
| maintenance to business property | | | | should the possibility of claiming a sales tax deduction. |