Commonly Missed Tax Deductions

Many business taxpayers fail or neglect to deduct otherwise eligible business expenses or fail to fully deduct qualifying business expenses. As a result, millions of dollars are overpaid to the Internal Revenue Service every year. Below is a listing of some commonly missed deductions or deductions that you may not be fully utilizing. You may wish to carefully examine your records to determine if you may be missing any of these deductions.

Home Office Deduction: If you use part of you home as a home office, you may be entitled to deduct expenses related to the home office based on the percentage of square footage the home office occupies. Related expenses include mortgage interest, property taxes, utilities, and repairs, etc.

General Business Expenses: If you use your personal funds for business expenses such as office supplies, these are qualifying business expenses, which you may deduct.

Meals and Entertainment Expenses: If you have used your personal funds to pay for meals and entertainment expenses, these expenses qualify as a business deduction, subject to limitations. In addition, you should keep detailed records on each expense.

Personal Assets Converted to Business Use: If you have contributed personal assets, such as a computer, the fair market value of these assets qualify as a business deduction, subject to depreciation limitations, beginning with the date of conversion.

Self-Employed Health Insurance: As a self-employed taxpayer, you may deduct 100 percent of your health insurance premiums.

Communications Expenses: Expenses related to the business use of your personal telephones, cellular phones, and internet connections may be deducted.

Automobile Expenses: Mileage and other related automobile expenses might be deducted when your personal vehicle is used for business purposes.