Internet Marketing: Get Your Tax Money Back
Tax deductions for business expenses aren't just for large
corporations. As an Internet marketer or online entrepreneur it
is important to know what you can and cannot deduct to save
money on your taxes.
People new to business taxes tend to fall into one of two
groups. The first group are those people who simply don't
believe they can be eligible for tax deductions. The second
group are those who believe anything they touch while conducting
business can be written off as a business expense. Both ideas
will cost you money; the former in lost tax money, the latter in
IRS fines.
In general, the kinds of things that can be deducted deal with
the ongoing operation of your business: rental costs, utility
expenses, and travel expenses. Not, for example, a new car.
Items that add permanent value to your business (i.e. assets)
are capitalized, not deducted. Interests on mortgages or repair
of computer equipment (which maintain rather than appreciate
your businesses value) are deductible expenses.
If you use your personal vehicle for your small business you may
be able to deduct repair expenses. If you have a room in your
home used strictly as a home office you can deduct certain
expenses. There are numerous ways to plug the money leaks
streaming out of your business.
Luckily, the IRS has listed in detail what you can deduct in its
free publication entitled, shockingly, "Business Expenses." (http://www.irs.gov/p
ub/irs-pdf/p535.pdf) At fifty-eight pages it is not a casual
read, but it has a good index you can use to find the parts
relevant to your business.
The IRS Small Business site (http://www.ir
s.gov/businesses/small/index.html) contains a lot of useful
information and, as government websites go, is well put together
and easy to navigate. From this site you can access practically
every form needed in your relations with the IRS and even find
out how to electronically file for free. Our tax system isn't
simple, but at least they publish the rules.