A business lawyer Orange County plays many important roles. One is to help a business determine how many valid tax deductions it can claim. By taking deductions, the amount of profit is reduced, which has the effect of reducing the business’ tax liability. Some key deductions that small businesses may be able to claim include:
If a business owner uses his or her personal vehicle for work or the business owns a vehicle, the costs of maintaining the vehicle and mileage. One manner of claiming an automotive expense deduction is to use the actual expense method which involves keeping track of and deducting the actual expenses related to business use. The other method is to multiple the IRS’ standard mileage rate by the number of miles driven.
Another potential business deduction is the costs accumulated to start up the business. The Internal Revenue Service permits a business to deduct $5,000 of capital expenses for the first year of business and any remaining amounts in equal portions for the next 15 years.
A business lawyer Orange County can explain that professional fees can also be deducted, such as professional courses, business books and fees paid to lawyers, accountants and consultants.
Credit card interest and interest on real property owned by the business can also be treated as a business tax deduction.
If you would like more information about other possible tax deductions, contact an Orange County business lawyer from Daily Aljian LLP.