The 6 Golden Tax Deductions

Posted on 19. Feb, 2007 by DeanHunt in Business Advice

There are only two things that are guaranteed in life:

1) Taxes

2) Death

Neither are very nice, and whereas we cannot control our fate, we can control our taxes.

So I have compiled a list of six golden tax deductions:

1) Motoring expenses – You can now choose to deduct the expenses incurred from being mobile. This can include (Petrol, oil, tires, repair work, insurance depreciation, and any rental payments). These however only apply for the business related portion of your motor. To keep it simple you can use the standard mileage rates from 2004 which work out at 37.5 cents per mile (Approx 24p per mile)

2) Other taxes – You can also deduct Social Security and any medical related taxes so that they match withholdings on employees wages, unemployment taxes, sales taxes and any real estate taxes paid on business assets. This may not be valid for many of the under 21 webmasters out there, but it is worth noting for the future.

3) Home office – If like me you use your home as your office, then you may be able to deduct some or all of the mortgage interest that you paid. Also note that a % of the ultility bills and any expenses from the propery such as repair work are also included. If you are still living with your parents then this will not apply yet, but as soon as you move into your own pad you can to start deducting.

4) Depreciation – The first time I heard the word Depreciation, I thought that it meant someone was no longer happy with the quality of my work. But infact it actually is one of the main golden keys to tax deduction. Depreciation may be taken on things like cars, equipment such as mobile phones, computers, photo equipment etc.. The general rule is that these items must be solely used for business, but speak to your accountant and he/she may surprise you with what actually can be included.

5) Professional fees – Next time you get a whopping great invoice from your accountant, don’t panic! remember that professional fees such as lawyers and accountants also can be deducted from your tax bill.

6) Meals & Entertainment – It is possible to deduct 50% of all of the meals and entertainment done directly for business purposes. If you work from home then this is something you should look into.

Here at Retiredat21.com we have a lot of young superstars of the webmaster field, so if the above doesn’t apply to you yet, then bookmark it or print it for future use. The tax man will come knocking one day, so be armed and ready with this Retiredat21.com tax deduction quicksheet.

By Dean.