Home-based businesses: Working from home allows for the home office deduction, but it also allows for travel expenses if the home is the place of business. When home-based business owners leave the house and travel to different locations for business purposes, all the travel is deductible.
They should keep a log and records, so the standard mileage rate or actual expenses may be taken.
Sales tax: State sales tax, especially on big-ticket purchases like vehicles and equipment, is fully deductible.
Interest and bank fees: Businesses can write off interest paid on credit cards, loans, overdue bills, account payables, as well as bank fees, such as non-sufficient funds fees or monthly surcharges.
Hiring veterans: While the “Work Opportunity Credit” is not a deduction because it does not reduce income, it does reduce the final tax bill, dollar for dollar. The credit is available to businesses that hire veterans for the first time. The amount of the credit is based on a number of factors, including how long the veteran was receiving unemployment compensation and whether or not the veteran is disabled. Employers must file Form 8850 with their state agency to get certification.
Since tax rates increase to 39.6 percent this year for those with higher income — $440,000 for a single person or $450,000 for married filing jointly — it is important to take all the dedications the business needs to stay below that income limit if possible.