| As we enter mid-March, taxpayers begin to | | | | as sponsoring a youth team |
| become very interested in deductions. Following | | | | · Business association dues |
| are a few that you may be entitled to claim. | | | | · Business-related magazines |
| Deductible Expenses | | | | · Casualty losses |
| · Office expenses | | | | · Beverage services |
| · Rent or lease payments | | | | · Credit bureau fees |
| · Advertising | | | | · Taxi fares |
| · Costs of goods sold | | | | · Telephone calls made on trips |
| · Insurance costs | | | | · Self-employment tax [if applicable] |
| · Utilities | | | | Sales Tax Deduction Option |
| · Payments to independent contractors [file | | | | The American Jobs Creation Act of 2004 |
| form 1099] | | | | provides all taxpayers with the option to claim a |
| · Accounting fees | | | | deduction for state and local sales taxes instead |
| · Legal fees | | | | of state and local income taxes. If you purchased |
| · Communication expenses | | | | a high cost item during 2004, you may find that |
| · Credit Card Interest for business charges | | | | the total sales tax you pay far exceeds your |
| · Travel expenses | | | | state income tax payment. If so, you should |
| · Vehicle expenses | | | | determine whether you should claim a larger |
| · Business-related meals and entertainment | | | | deduction by using the IRS Optional State Sales |
| · Uncollected receivables | | | | Tax Tables found in IRS Publication 600. |
| · Bank fees on business accounts | | | | The new sales tax deduction is a windfall for |
| · Interest payments on notes | | | | taxpayers in Alaska, Florida, Nevada, Texas, |
| · Excise and fuel taxes | | | | Washington, South Dakota and Wyoming. These |
| · Employment taxes | | | | states do not tax the income of their residents, |
| · Real estate tax paid on business property | | | | which makes the sales tax deduction a very |
| · Special local assessments for repairs or | | | | valuable deduction indeed! Regardless, taxpayers in |
| maintenance to business property | | | | all states should the possibility of claiming a sales |
| · Promotional costs that create goodwill such | | | | tax deduction. |