If you are a small business owner, you are able to qualify for several tax deductions if you know what to look for. To save money and reduce the amount you owe to the Internal Revenue Service (IRS), here are a few things to look for:

Start up deductions: These kinds of deductions are made for expenses generated with the start up of your business. Deductions up to $5,000 for the business start up and up to $5,000 for first year organizational operations can be made. These deductions can be made for expenses after Oct. 22, 2004. If they are made before this date or if they exceed $50,000, you may run into unique rules. Any expense that is not covered may be amortized over a 180-month time period from when you open your business. These expenses may include advertising, market research or employee training among other things.

Deductions for Education: for additional information regarding these types of deductions, see Publication 970. As a rule of thumb, employers are allowed to deduct educational related expenses such as courses that can directly help the company or is required for continue employment with the organization. For the self-employed, certain expenses can be deducted, including transportation to and from classes.

Deductions for Vehicles: make sure if you are considering this type of deduction you keep detailed records. You are allowed to deduct such expenses by either the gasoline amount or by the mile, as well as maintenance expenses. If you use your personal car for business reasons, make sure to keep a record of where you went and why. If your employees use a business car for their personal use, make note of the value in their W-2 forms or wage records. You can save even more by using eco-friendly cars. Hybrids, for example, give you up to a $3,150 credit on your taxes.

Cell Phone Deductions: you can use your cell phone bill as a tax deduction if it’s part of your business. Do not, however, use it for personal calls. Maintain good records and the phone bills as proof that the calls made were for business purposes.

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