Friday, October 6, 2017

Tax Deductions for Start Ups

Starting a new business is exciting, but it can also be incredibly challenging and expensive! Fortunately, though, there are a lot of business deductions available that can really help all those start-ups out there to save money and to get through those first few years.   


The most common types of tax deductions that can benefit start-ups are those that apply to “ordinary” and “necessary” business expenses, simply meaning costs incurred that any other business in the same industry would also incur. Some items that fit this description and that qualify for deductions include:    

l  Equipment purchased for normal operation
l  Home offices
l  Transportation expenses incurred traveling from one business location to the next

For true start-ups that don’t even have these types of expenses yet, there are still deductions available. In fact, many of the costs that are associated with starting a business can be deduced through amortization, such as:

l  The costs of a business property
l  The cost of researching a business site/location
l  The costs of market research
l  The costs of product analysis


Of course, as is always the case with the IRS, there are certain restrictions and eligibility requirements attached to each possible deduction, so don’t just assume you qualify for something without doing your research.

With that said, though, the absolute best way to ensure that your blooming business gets all of the deductions for which it can qualify and that it comes out on top is to hire a professional financial adviser who can help walk you through the process and get your business off the ground and running.


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