The Daily Deduction

Smooth Tax Moves - Business Owners Shop Black Friday

 

 estblog - BizOwnerBlackFri 

Own a business?  It might be worth it to stand in the Black Friday lines and grab drastic deals on electronics and other buys.  Your computers, printers, and other office equipment can be deducted as business expenses in the first year you purchase them. 

Most people think of the day after Thanksgiving as the start of the holiday shopping season. But if you’re a small-business owner, Black Friday can be a great opportunity to invest in your business and make a tax-smart move.  Then, you may be able to  claim those business expenses on your 2012 tax return. Double win!

Keep in mind that the IRS says business expenses, “must be both ordinary and necessary.” That means the expense should be both “common and accepted” and “helpful and appropriate” for your trade or business.  In other words, if you work as a retail store owner, it may be ok to deduct the new office chair that you bought.  The $3,000 purse that you bought to carry all your personal belongings to your store will have to stay off the deductions list.

Business expenses can be complicated.  If you own a business or freelance on the side, make sure you use Premium tax filing from eSmart Tax.  Our Premium edition handles depreciation, amortization, profits and losses, and other business-related tax issues.

Posted To: The Daily Deduction By: Lauryn on 11/20/2012 09:34:47 AM
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