When you are running a minor company, there will surely be expenses that you will incur along the way. The good thing with being a minor company is that the expenses are easier to track. Remember that you need to keep track of your expenses because that will decide whether the taxes you pay for will be hefty or affordable.

Tracking the expenses is also important because they can become deductions. Thus, they have to be recorded properly so that you can do a good job with the small business tax preparation Annapolis MD. If you fail to record these expenses, you will be unable to enjoy the benefits of the deductions. Here are the expenses that you must record.

First, there are the expenses for entertainment. When it comes to the expenses that are for entertainment, you have to keep a diary of it. In the diary, you will have to include the amount, purpose, date, as well as the place of the venue. If you can, include the names and relationships of the people who were entertained.

Travel expenses are common for a company so you should make sure to take note of them properly. When it comes to the travel expenses, there will be times when you are tracking the mileage on the car and times when you are tracking the fuel consumption. It is up to you how you will track it. Just make sure that your method is convenient.

You must also count the meal expenses as another one of the many expenses that are counted for a deductible. When you are having a meal for a company reason, then you need to make sure to record that expense. Of course, the meals that you need to record are those which are made away from the home.

Be sure to note the home office deductions as well. Usually, you have the simple option offered by the IRS when it comes to the calculation of the home office deduction. If you want to document the actual expense, then what you need to do is multiply the prescribed rate with the allowable square footage.

Charitable donations may not be technically an expense for the company but they are under the deductions as well. Remember that this is still a contribution of your asset. It can be an equipment or a software. Unless the value has not yet depreciated to zero during the donation, then you are still entitled to the deduction.

Remember to consider health insurance as one of the many deductibles you can count for your enterprise. You can easily have the said deductible counted for your enterprise, especially if you are paying the premiums for the health insurance of all employees. It should not be that difficult for you to qualify for the plan.

Your start up expenses are surely deductions too. This is all under an act that the government has passed. You can easily deduct up to 10,000 dollars of your start up costs for the investigation of the potentials of the company that you are planning to start or of your pre-organization costs accumulated before the actual start of this company.

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