bharatbhasha.com
Free Articles  >>  Business And Finance >>  Page 3242  >> 

Schedule C Tax Deductions A Is for Accountants Attorneys Advertising





If you're a sole proprietor, here's the lowdown on three small business tax deductions you can report on Schedule C. They all start with the letter "A".

1. Accountants. The fees you pay your accountant are generally tax-deductible on Schedule C, provided the fees are for services rendered on behalf of your business. So, if you pay an accountant to prepare your income tax return, that tax prep fee is deductible to the extent it applies to the forms required for your sole proprietorship, such as Schedule C, Schedule SE, Form 4562 and Form 8829.

But what if your accountant also prepares Form 1040, Schedule A, and any other non-business forms on your personal income tax return? You cannot take a deduction on Schedule C for the fees paid to prepare personal income tax forms, so ask your accountant to itemize his tax prep fees on the invoice, separating personal form fees (like Form 1040) from business form fees (like Schedule C). Only the business form fees are deductible on Schedule C. The personal form fees are deductible on Schedule A.

Does your accountant provide other business-related services? Fees for these other services are also deductible, such as bookkeeping, payroll, payroll tax returns (including all the year-end reporting such as Form W-2's and Form 1099-MISC), business consulting, software training, financial statement preparation and analysis, and so on. Should you ever be audited and pay your accountant to represent you before the IRS, such fees would also be deductible.

Where do your report accountant fees on Schedule C? Line 17 is the most logical place, "Legal and professional services".

2. Attorneys. Legal fees you incur in the course of business are also deductible. And again, it's critical that you only deduct attorney fees related to your business. Personal legal fees are not deductible on Schedule C. Examples of business-related legal fees include the drafting of contracts and any other documents for use in your business. If you pay a monthly fee to a company like Prepaid Legal (for business legal services), that is a deductible business expense. Put your attorney fees deduction on Line 17, right along with any accountant expense.

3. Advertising. Any expense you had to promote your business, either offline or online, is deductible as advertising. Think about all the possible ways to hang out your shingle: in the offline world, this includes print media ads, (be sure to include not only newspaper and magazine ads, but also ads in your local neighborhood association newsletter and your child's school PTA phone directory), television and/or radio commercials, coupon decks, yellow pages, billboards, etc. If you use direct mail, you can deduct the cost of printing as well as the postage.

Do you advertise via the internet? Online ads are just as deductible as offline ads: banner ads, ezine ads and email ads are all deductible. Advertising expense has its own line on Schedule C, line 8.


About Author Wayne M Davies :

Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit <a href="http://www.yousaveontaxes.com" target="_blank">http://www.yousaveontaxes.com</a> . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.


Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/134085


Article Added on Sunday, May 10, 2009
LD
Other Articles by Wayne M Davies

Small Business Tax Tips How to Find Hundreds of Deductions
Are you a small business owner who's frustrated about taxes? You face a mind-boggling array of choices when it comes to figuring out what is and is not deductible on your income tax return each year. And just when you think you've got this tax system figured out, new laws are passed and it feels like you've got to start all over. Perhaps the best place to begin this journey is the income tax return itself. Depending on what type of entity you own, here are the main income tax forms: Schedule...

Schedule C Tax Tips What s Deductible
? What is the most frequently asked tax question? Are you ready? Here it is: What's deductible? It comes in several forms, such as: How do I identify all the deductions I'm allowed to take? Is there anything deductible that I'm not deducting? How do I make sure I'm taking all legal deductions? Is there one resource that describes all legitimate deductions, A to Z? Knowing all allowable small business tax deductions is no easy task. Our beloved politicians have done much to complicate our lives...

Schedule C Tax Tips 3 Easy Ways To Reduce The Dreaded Self Employment Tax
Frustrated with the amount of self-employment (SE) tax you pay each year? You should be. The sole proprietor pays twice as much in SE tax (15.3%) as the employee pays in federal payroll taxes (7.65%). What's a Schedule C filer to do? Here are three ways to reduce the dreaded SE tax. 1. Take the home office deduction. Have you been mislead by the never-ending rumor that the home office deduction increases the chances of an audit? Such talk is bogus, and to believe it is to needlessly pay too...

Schedule C Tax Deductions C is For Contributions Contractors Commissions
Here are three legitimate tax deductions for the self-employed that begin with the letter C. Do you have these expenses in your sole proprietorship? If so, be sure to report them on your tax return. 1. Contributions. By contributions, I'm referring to charitable contributions - donations you make to tax-exempt organizations (known in tax lingo as 501c3 organizations) such as churches, synagogues and other humanitarian or educational institutions that have IRS non-profit status. This is one...

What Is Form 8829 And How Do You Prepare It
If you are a Sole Proprietor and work out of your home, there's a nifty deduction known as the home office deduction, which you might be entitled to take. To do so, you must file Form 8829, Expenses for Business Use of Your Home, as part of your federal personal income tax return. The purpose of this article is to give you an overview of this form and how to prepare it. Form 8829 has four parts. Here they are: Part 1. Part of Your Home Used for Business. Lines 1-7. This is where you calculate...

What Are The Most Overlooked Small Business Tax Deductions
When it comes to tax deduction strategies, we all look for The Magic Pill. It's tempting to wonder whether there's a secret list of unknown and unused tax deductions that the government is hiding from the average small business owner. I'm sorry to disappoint you, but there is no such list. The tax code is readily available to anyone who can read. Of course, whether our tax rules are also easily understandable is another matter. But for the most part, it is possible for someone with a high...

Small Business Tax Questions What Tax Deductions Are Available For S Corporations
Perhaps you own an S corporation and are wondering what tax deductions are available for your business? You came to the right place - read on to find out. First, the good news: virtually all tax deductions that other business entities take are also available to S corporations. And if you are looking for a good list of deductible business expenses, a good place to start would be the S corporation federal income tax return, Form 1120S. On page one, lines 7 through 18, you'll see items such as...

Schedule C Tax Deductions B Is for Bad Debts Bank Charges Books
Are you wondering whether you are deducting all the expenses the law allows for your sole proprietorship? Here are three commonly overlooked deductions that begin with the letter B. 1. Bad Debts. If you use the Accrual Method of bookkeeping, you record income from a sale when you invoice the customer, regardless of when or even whether they pay you. So what happens if they don't pay you? Let's say that several months have passed and you keep sending them statements that continue to be...

Year End Tax Deductions How To Know If Your Charitable Contribution Is Tax Deductible
One of the easiest ways to reduce your taxes is to be a generous person. Generally speaking, contributions to tax-exempt charitable organizations are deductible as an itemized deduction on Schedule A. If you do not itemize deductions on Schedule A, you can still make the contribution, but it won't be deductible for federal income tax purposes. How much can you benefit by making a charitable contribution by the end of the year? If you're in the 25% tax bracket, giving away $10,000 reduces...

Small Business Tax Tips How to Deduct Anything
Looking for an easy way to know exactly what you can and cannot deduct on your income tax return? Knowing what is deductible and what isn't deductible has mystified small business owners for decades. This article should help you see the big picture. What's deductible? Believe it or not, anything is deductible. Anything? Yes, anything. Let me explain. Anything is deductible, provided that it is specifically mentioned in the tax code as deductible. It's as if Uncle Sam is saying, with a big...

Click here to see More Articles by Wayne M Davies
Publishers / Webmasters
Article ID: 134085
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


165 Users Online!!
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Linux Reseller Hosting Provided By AwareIndia







Company IDS