4 Tips for Small Business Owners
- Interest deductions on small business loans. If you occasionally have to borrow money to operate your business, you’re not alone. Fortunately, the interest on business loans may be deductible. Keep in mind, however, that these deductions don’t apply if you borrow from friends or relatives. And since every situation is different, it’s always best to check with your tax attorney.
- Business mileage. This is hardly big news, especially if you’ve been in business for a while. But you may not know that the 2016 mileage credit is 54 cents per mile. To qualify, your business must operate fewer than five cars, and you can’t claim Section 179 deductions on your vehicles.
- Cell phone and depreciation. Like many business owners, you probably rely heavily on your cell phone when managing the daily operations of your business. As of 2010, you can deduct the cost of your cell phone as well as the cost of phone depreciation.
- Business startup costs. You can easily spend a chunk of change just getting your business off the ground. It’s a good thing the federal government recognizes that. Although the deductions for startup costs are not as extensive as they once were, you can now spend up to $50,000 to deduct up to $5,000 in expenses in your first year of business.