Steps to understanding small business tax breaks

Written By Gary Spirer Published March 28th, 2010

If you’ve just started a business, or even if you’ve been running one for many years now, it is always great to get tax breaks. There are a few tax breaks for small businesses, however, that you may have missed. Let’s take a look at how these tax breaks affect you.

Step 1 Keep track of the limits on expensing business assets

The Small Business and Work Opportunity Tax Act of 2007 passed many years ago but some are still unaware of the benefits. For example there are benefits dealing with the increased limits on expensing of the business assets. Keep a track record of how you expense business assets.

Step 2 Consider the benefits of sole proprietorships when filing

If you or your spouse owns a business that is not a corporation, you file your taxes as a sole proprietor. That means you don’t have to file taxes as a partnership…both you and your spouse can then get credit for paying self-employment taxes.

Step 3 Write-off your home office

If you run your business out of your home, this is considered your home office and can be used as a write-off. If you travel to and from your clients’ offices, if you take your clients to work or on business trips, or if you purchase items for the business like new computers, this can all be used as a write off.

Step 4 Keep records and receipts

It is important to keep records and receipts of your business practices, specifically of the items that will be used in your write-offs. You should keep records for up to five years. Make sure to keep a digital copy of your receipts or credit card payments as receipts can fade in sunlight exposure.

It’s that simple. Remember, tax breaks are meant to help your business. Please visit for more great business advice.

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