Those Small Business Deductions

May 20, 2014 2:04 PM
Those Small Business Deductions
" BOSTON (CBS) – There are many deductions for the self-employed.

Let’s start with your car. You can either deduct the actual expenses of driving your car or you can use a mileage allowance set by the IRS. Currently for this year its 56 cents a mile for business travel.

If you choose the actual expenses, you would deduct gas, oil changes, new tires, insurance, excise tax, etc. With the mileage allowance, you only need to keep track of the miles you travel for business. You get to deduct tolls and parking fees no matter which method you choose.

If your business owns the car you are allowed to depreciate it each year as well.

Health Insurance Premiums: You can deduct 100% of the cost of your premiums. This is a nice perk!

Social Security: As a self-employed individual you will be responsible for paying both the employee’s and the employer’s share of Social Security and Medicare taxes on your earnings. However, you will get a deduction for the employer share’s you pay "

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