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Small businesses can always use a few good tax write offs. So we recently came up with 5 tax write offs for 2010. Let's jump right in:
Create jobs, get a deduction
If you hired new workers between Feb. 3, and Dec. 31, 2010, that didn't merely replace people who left and who had been unemployed for more than 60 days, you can save 6.2% of your payroll tax. You can also get another $1,000 business tax credit in 2011 if you keep the new employees for 52 weeks or longer.
Use a cell-phone, get a deduction
Cell phones were considered "listed property," which is an item purchased for work or provided by an employer but that can be used for personal use, but only if you properly tracked them. As long as you kept track of their relative use, you could deduct the expense proportionally. But now if you provide your employees with cell phones or if you use one for business, you can now write it off directly.
Buy new equipment, get a deduction
The IRS is offering "bonus depreciation," which temporarily allows small business tax deductions for equipment and a little something extra. If you bought new equipment, such as computers, office furniture and manufacturing equipment between Sept. 8, 2010, and Dec. 31, 2011, you might be able to write off 100% of the cost.
Buy health-insurance, get a deduction
If you are a small business and buy health insurance for your employees, you may be able to write off 35% of the premiums. You must have less than 25 full-time workers and the average annual salary across your employees cannot exceed $50,000. There are other requirements as well, so not everyone will qualify. It's a great deal if you do though.
Keep good records, get more deductions
There are a lot of deductions that people miss out on because they don't keep proper records. Here are some deductions that people miss out on because of poor record keeping:
For more small business tax information, take a look at AOL small business.
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.