What Expenses Can Entrepreneurs Deduct?

What Expenses Can Entrepreneurs Deduct?

By PAULETTE THOMAS

"Question: I've invested more than $1,000 in start-up expenses for a small, home-based business. Are these expenses deductible? Can they be carried over until next year if necessary?

-- Jennifer, Pittsburgh

Jennifer: The answer to your first question is yes. And the answer to your second question is yes. Can we move on?

Like many people, I detest thinking about taxes. I don't mind paying them nearly as much as I resent the time spent keeping track of it all. My idea of 'accounting' is transferring receipts from my wallet to a box in my office."

- Tax time begins! The tax benefits of a business are one of the reasons to go into business for yourself (although it should not be the only reason!). You should find out how to handle your taxes, either through your own reading, through a qualified tax professional or through your accountant. There are strategies you will need to employ in some situations and it is better that you find out what they are beforehand so that you don't make an expensive mistake. -ed.

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