The cost of paying legal fees or accounting fees for your business may also be deducted from your taxes. These are considered essential for your business and are only used for your business. You are not using them for your own personal good. If you use the same legal or tax advisor, you will want to obtain records that are separate for each entity. You can also deduct the use of your car or any other motorized vehicle that is strictly used by the business. If you use your car for your business, you must carefully observe how much distance is taken from your place of business to the place where you are doing the job. That is the amount that can be deducted from your tax. Using your car simply to get to work does not count.

If you are traveling for your business you can deduct the amount that it costs you of getting lodging or other expenditures. If you are entertaining clients also you are able to deduct this. The amount that you are able to deduct from entertaining clients is only 50% though. If you want to give them gifts, the maximum amount you are able to spend is $25. Keep a record of all money spent especially when it comes to these as when if a business is audited these are the two most likely to appear as questionable. If you have all the paperwork available it is more likely to be dismissed.

Any software that you need to buy for your company as well as other essential equipment can be written off. Generally software is said to have depreciated completely in value over 36 months. Until December 31, 2010 any software bought off of the shelves in store will be deducted 100% off of the company taxes. Computer hardware if valued under $133,000 is also 100% tax deductible for the year.

If you sell goods, any goods that are not sold can be deducted as a business expense. If you are not able to sell them, then you did not make a profit. If it is shown that the amount of goods you did not sell is greater than the amount of goods you did sell for over 5 years, the chance of you being audited greatly increases though so it is not wise to overstock on items.

Your business is also able to give a charitable contribution which will count as a tax deduction . Many businesses give generous donations towards the end of the year especially if they have made a larger than normal profit so that they will not have to pay as much in taxes.

Any education that you may have received or have given to employees so that the company was better able to run can also be deducted. These are considered essential for the company to work. If you do not have properly trained employees then you will not be able to attract more customers to your business.

On your loans for your business you are able to deduct the interest from them. While this may not seem like much it will save you in the long term from having to pay a huge amount.

If you are running a home based business , there are other tax breaks that you may find. For example, you are able to deduct a portion of your home expenditures to cover the cost of having an office in your house. You will also be able to deduct utilities as they pertain to your business. If you do choose to deduct a portion of your home as your business, you must be prepared to present many documents in order to back up your claim.

No matter where your business is based you are going to be able to find tax breaks so that you are able to save as much money as possible. You do not want to have to pay more money than what you need to. It’s your money and you deserve to keep as much of it as possible.