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If you are only claiming general business tax deductions, you are paying more than you should in taxes. Ask yourself if you have seen any of following questions in a tax software program interview:
Q. Do you store business inventory in your house?
Hint: You may be able to claim hundreds or thousands of dollars in deductions.
Q. Did you start a pension plan for your employees?
Hint: You may be able to claim a tax credit for next three years totaling $1,500.
Q. Do you have a home-based business and a second office?
Hint: You may be able to deduct your commuting expenses each day. Yes, commuting expenses.
Q. Do you have business meetings at your home?
Hint: Did you charge your business for space?
Q. Should you claim standard mileage rate for your auto or actual costs?
Hint: The standard mileage rate may not best option.
Q. Did you modify your business location to comply with Americans with Disabilities Act?
Hint: You may be able to claim a tax credit AND tax deduction for tax savings of $20,000 or more.
Q. Did you refinance your home?
Hint: The points you paid on your original mortgage are fully deductible now, not over length of loan.
This represents only tip of iceberg of available credits and deductions available to you. Just one of these deductions could save you thousands of dollars in taxes. Yet, you are never going to see these questions raised in a tax software program interview. The tax code and regulations are simply too large to be incorporated into a usable software program.
Your business is unique. You face and overcome issues and problems that are unique to your size, financial situation and particular business needs. Donít short change yourself by limiting your deductions by using tax software programs.
Richard Chapo is with Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Go to our article section to discover tax strategies and deductions.