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Business expenses for taxes4/8/2023 ![]() Businesses can write off 9% of their 2010 net income from U.S. The first $250 of eligible expenses is ignored, and the next $10,000 of costs qualifies for a 50% tax credit.ĭomestic production deduction. If your company had gross receipts of $1 million or less in 2009 or employed no more than 30 workers then, it is eligible to claim a credit for expenses incurred in 2010 to improve access for the disabled, such as constructing entrance ramps or special parking spaces. The depletion deduction allows an owner or operator to account for the reduction of a product's reserves.ĭisabled access credit. Depletion is the using up of natural resources by mining, quarrying, drilling, or felling. This is a credit available to small producers of alcohol and ethanol fuels.ĭepletion. Fees imposed by credit card companies to process charge card sales can be deducted.Ĭredit for alcohol used as a fuel. Amounts paid to independent contractors who provide services to your business are deductible.Ĭredit card fees. Commissions paid to salespeople and other workers are deductible.Ĭontract labor. Employers can claim a tax credit of up to $150,000 a year for 25% of the cost of building and operating child-care facilities for their employees.Ĭommissions and fees. This rule was not extended to cover 2010, so net operating losses incurred in 2010 – including those created as a result of 100% bonus depreciation – can be carried back only two years to generate refunds of taxes paid.Ĭhild care facilities. Thanks to economic recovery legislation, however, in many cases, 20 losses could be carried back for as many as five years and bring a refund of taxes paid for those years. Generally, firms can use net operating losses in the current year to reclaim taxes paid for the previous two years. The cost of business meetings that you or your employees attend is a deductible expense.Ĭarryback losses. Up to $25 a year can be deducted for the cost of business gifts to any number of customers or clients.īusiness meetings. The same 100% bonus depreciation rule applies for assets acquired in 2011.īusiness gifts. For such property, 100% bonus depreciation is allowed, meaning you can deduct the full cost on your 2010 tax return. ![]() An even better deal applies for new assets acquired and put into service after September 8, 2010. ![]() For assets to be depreciated over five years, for example, the total first-year depreciation deduction would be 70% of the cost. For new business property acquired during most of 2010, businesses can deduct 50% of the cost of property as bonus depreciation, and depreciate the remaining cost under the regular depreciation rules. Charges imposed by banks for business accounts are tax-deductible expenses.īonus depreciation. ![]() If your business loaned money to someone and determined in 2010 that it would not be repaid, the loss is deductible against business income on your 2010 return.īanking fees. ![]() For 2011, the standard mileage rate for business driving is 51 cents a mile.īad debts. Alternatively, you can keep track of the actual cost of operating the vehicle, including fuel, repairs, insurance and depreciation, and deduct that amount. The standard mileage rate for business driving in 2010 is 50 cents per mile. ![]()
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