Benefits Of Small Businesses Deductible Expenses Essay
There are many different expenses that small businesses are allowed to deduct on their annual tax returns. These deductions vary from business to business; however, the standard deductions are basically the same straight across the border. Here are some of the expenses that small businesses are allowed to claim:
New Equipment Deduction
Some assets can be deducted in full in the year you buy them. Section 179 states that small businesses can deduct an annual threshold amount of the cost of certain business assets and equipment bought and placed into operations that same year. Real estate, property bought from close relative and inventory bought for resale are a few assets that do not qualify for deductions under Section 179.
While the threshold amount for Section 179 was previously set at $25,000, this amount was increased drastically in an attempt to help small businesses survive a struggling economy. Year ending 2014, this annual limit increased to $500,000; however, the amount will remain at $25,000 for the 2015 tax period.
Deduction paid for moving expenses
There are certain non-deductible moving expenses that taxpayers my claim if they move because of their business or job. To qualify for this deduction, your move must be in connection with your business. Your new place of business must be at least 50 miles further than your old business was from your home in order for you to qualify for this deduction. Because moving expenses are…