Tax Strategies for the Small Business Owner: Reduce Your Taxes and Fatten Your Profits

Day-to-Day Expenses

It’s time to examine the deductions you are allowed to take on a tax return. We begin by reviewing what’s an allowable expense and what’s not. We then look at each category of expenses: cost of goods sold, the office, the car, travel, meals and entertainment, fixed assets and depreciation, and everything else. (Employees, payroll taxes, and benefits are covered in Part III.)