Tax Tips - Taxes Deducted As Business Expenses
By Richard T. Tyler

Owning your business is no easy feat. To keep it running and make money is hard work. No one wants to pay more money to the government than they have to. There are taxes that you may pay as a business owner that can be deducted at the end of the year as part of your business expenses. The list below is a good start:

1. Real estate taxes for improvements. This is a deduction for improvements that have been ordered by the city or state for the general welfare of the public. For example if the government levies taxes for improvements for the area where your office is located, you can deduct the part of the tax that went to interest as a business expense. Don't forget that taxes must be deducted in the year of payment. Using the accrual method or pay the taxes before they're levied is a tricky business and should not be done without the consultation of a tax professional.

2. State and local income taxes. Local and state government levy taxes on corporations and partnerships, these taxes can be deducted as business expenses in the year of payment. However federal taxes can not be deducted. If you itemize your tax forms, you can deduct these same taxes in your individual file.

3. Foreign income taxes. If your business is assessed for taxes in a foreign country, this can be deducted as a business expense. Individuals can claim the same deductions on their income, as this amount is not taxable by the US government.

4. Unemployment taxes. When you own a business, you're an employer, and as such you may be making unemployment payments to the state fund on behalf of your business and employee. These can also be deducted as part of your business expenses.

5. Exercise taxes. These taxes are paid to the government on commodities you manufacture, use or sell. These include environmental tax, luxury car tax, fuel tax, communication tax and manufacturer's tax. These taxes can be claimed as part of business expense.

6. Sales taxes. Whenever you buy equipment or pay for service for your business, you would have paid sales tax. This tax is also deductible as a business expense.

7. Self-employment taxes. When you're a business owner, you will be assessed self-employment tax. You can deduct half of that tax as a business expense.

There are many options out there for business owners. All these deductions can be part of your business expense, so look these up and learn more about them.

If you found this article useful, you can get more great tax tips and tons of free investment advice at Invest Money Stocks.

This article was written by Richard Tyler - a happily retired investment guru who ran several successful businesses during his earlier years. He now shares his wealth of knowledge on investment, business and strategic wealth management at Invest Money Stocks. Ignorance is often the reason why some people are unable to harness upon what they already have to make more money while some 'in-the-know' get richer every year simply through investments. Richard sees it as a passion as well as a pleasure to share his knowledge and experience and hopes that his website will be a wealth of knowledge for those who need help in investment and wealth management matters. Invest Money Stocks covers a wide range of topics from business management, home budgeting, personal wealth management to stocks investment, options trading, penny stocks trading, forex trading, bonds, technical analysis, fundamental analysis and more.

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