Business Loan

As a small business owner, it's wise to familiarise yourself with some cardinal tax deductions that may reduce your tax measure for 2004.

Employee Benefit Plans - You may subtract parts to employee benefit programs (such as wellness insurance programs and retirement plans). Depending on your fortune the upper limit part that you may subtract per employee in a qualified retirement program can travel up to:

$100,000 Oregon more than With a Defined Benefit Plan

$ 44,000 With a 401(k) plan

$ 41,000 With a SEP-IRA or Keogh

Automobile Expenses- You can elect to subtract the existent disbursals incurred (including gas, oil, tires, repairs, insurance, depreciation, and rent or rental payments) for the business-related portion of your car or motortruck expenses, or simply take the 2004 criterion mileage rate of 37.5 cents per business mile.

Social Security Taxes - You may subtract Sociable Security and Medicaid taxes paid to fit required withholdings on employee wages, federal unemployment taxes, as well as existent estate or personal property taxes paid on business assets.

Home Office - Depending on whether you utilize your home or other existent estate for business purposes, you may subtract some or all of any mortgage interest paid, as well as some or all of the care and repair disbursals associated with the property. The cost of public utilities and business stores associated with business usage are also deductible.

Depreciation - Depreciation may be taken on passenger cars, equipment used for amusement or recreational intents (i.e., photographic equipment, cell phones and computers), as long as these points are used solely for the business.

Bonus Depreciation - The 'bonus' depreciation tax deduction of up to 50 percent of the cost of new business equipment in the twelvemonth of purchase uses only to property placed in service on or before December 31, 2004. You may desire to see making any important equipment purchases before year-end to take advantage of this expiring provision.

Professional Fees - You may subtract professional fees, such as as those paid to a lawyer or accountant.

Meals and Entertainment - You may subtract 50 percent of repast and amusement disbursals associated with the behavior of your business.

State and Local General Sales Tax - Beginning in 2004, you will have got the option of electing to take an itemized tax tax tax deduction for state and local general sales taxes in stead of the itemized deduction provided for state and local income taxes.

Charitable Donations of Vehicles – Through 2004, a deduction equal to the just market value of a donated vehicle is allowed. Starting adjacent year, however, the tax deduction allowed will generally be limited to the gross return from the sale of the vehicle by the charitable organization.

Remember to maintain on data file the records and certification necessary to confirm all of your deductions. You should confer with a tax preparer or professional tax advisor to determine how specific tax regulations may impact your individual situation.