Tax Write Offs - 75 Possible Deductions

"What can I write-off of my taxes?" is probably the most common question fielded by an accountant. Interestingly, an IRS master list delineating write-offs does not exist. Rather, the rule of thumb set forth in IRC Section 62 states that a write-off is "any expense incurred in the produc

tion of income." It is important to note that each deduction has its own set of rules and limitations. For those whose income is not limited to W-2's, it is worthwhile to review all personal expenses to determine whether there are any that can reasonably qualify as a legitimate business expense and thereby help in reducing your income tax burden.

The list below contains 75 possible tax deductions for business owners. While broad, it is just a snapshot, and it is important to keep in mind that due to IRS limitations, they are not always appropriate. For example, the deductibility of entertainment expenses is limited to clients, customers, and employees; your mother would not qualify. There are other exceptions and rules to this expense as well, such as the 50% limitation on the deductibility of meal expenses. Other expenses, such as the home office deduction, are only partially deductible and based on the square footage of your office relative to the house.

Because the rules are many and complex, it is important to keep track of your expenses in an organized manner and review them with your accountant at the end of the year. This will help you maximize your deductions and ensure that they are legitimate so that you can minimize both your tax burden and risk of audit.

Possible Deductions for Taxes

§ Accounting fees

§ Advertising

§ Amortization

§ Auto expenses

§ Bad debts that you cannot collect

§ Banking fees

§ Board meetings

§ Building repairs and maintenance

§ Business association membership dues

§ Business travel

§ Cafeteria health-insurance plan (requires plan)