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Commonly Missed Business Tax Deductions

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Commonly Missed Business Deductions

Many business people pay more tax than needed because they miss deductions they might have taken. Here are some common business deductions for which you might be eligible. These deductions are presented as possibilities which you might want to explore. You may not be eligible for all of these deductions or a deduction may have restrictions on it. If you think you may be eligible for one or more of these deductions, check with your tax advisor for more information.

  • Carrying Charges
    Carrying charges are fees and interest on property. Some carrying charges may be deductible if they are not capitalized (counted as long-term expenditures).

  • Research and Experimental Costs
    Costs of research and experimentation may be deductible if you choose not to list them as capital (long-term) expenses. There are many restrictions and qualifications relating to this deduction.

  • Circulation Costs
    If you have a publishing business, you may be eligible to deduct costs for circulating a newspaper, magazine, or other periodical. This deduction does not apply to land or property.

  • Environmental Cleanup Costs
    You may be eligible to deduct costs for cleanup of environmental spills or other incidents, up to January 1, 2008. These costs are considered as “Other Deductions.”

  • Business Startup and Organization Costs
    You may be eligible to deduct some of your business startup costs up to $5,000 and organizational costs up to $5,000 (for expenses after October 22, 2004). If your startup or organizational costs exceeded $50,000, your deduction may be limited.

  • Disability Access Costs
    If you make improvements or remodel your business facility to accommodate customers and employees, you may be eligible for a deduction for these expenses. The annual limit for these deductions is $15,000.

Note that this list is provided as a reminder of possible deductions. For more details on these deductions, see IRS Publication 535.

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