If you ' ve got some old computers or office furniture , giving it to a school or nonprofit organization can yield goodwill plus a tax benefit . However , if the equipment has been fully depreciated ( written off ), you can ' t claim a deduction .
12 . Taxes
Taxes incurred in operating your business are generally deductible . How and when they are deducted depends on the type of tax :
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Sales tax on items you buy for your business ' s day-to-day operations is deductible as part of the cost of the items ; it ' s not deducted separately . However , tax on a big business asset , such as a car , must be added to the car ' s cost basis ; it isn ' t deductible entirely in the year the car was bought . � Excise and fuel taxes are separately deductible expenses . �
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If your business pays employment taxes , the employer ' s share is deductible as a business expense . Self-employment tax is paid by individuals , not their businesses , and so isn ' t a business expense . Federal income tax paid on business income is never deductible . State income tax can be deducted on your federal return as an itemized deduction , not as a business expense . Real estate tax on property used for business is deductible , along with any special local assessments for repairs or maintenance . If the assessment is for an improvement -- for example , to build a sidewalk -- it isn ' t immediately deductible ; instead , it is deducted over a period of years .
13 . Education Expenses
You can deduct education expenses if they are related to your current business , trade , or occupation . The expense must be to maintain or improve skills required in your present employment . ( The cost of education that qualifies you for a new job isn ' t deductible .)
14 . Advertising and Promotion
The cost of ordinary advertising of your goods or services -- business cards , yellow page ads , and so on -- is deductible as a current expense . Promotional costs that create business goodwill -- for example , sponsoring a peewee football team -- are also deductible as long as there is a clear connection between the sponsorship and your business . For example , naming the team the " Southwest Auto Parts Blues " or listing the business name in the program is evidence of the promotion effort .
Easily Overlooked Business Expenses
Here are some additional routine deductions that many business owners miss . Keep your eye out for them .
� � � � � � � � audiotapes and videotapes related to business skills business association dues business gifts business-related magazines and books casual labor and tips casualty and theft losses coffee and beverage service commissions
� � � � � � � � � credit bureau fees online computer services related to business parking and meters petty cash funds promotion and publicity seminars and trade shows taxi and bus fare consultant fees
Note : Just because you didn ' t get a receipt doesn ' t mean you can ' t deduct the expense , so keep track of those small items .
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