Tax-Saving Tips for Small Business Startups

6 Feb

As the federal budget tightens, the government is looking for ways to collect more taxes, which has the Internal Revenue Service looking toward small business startups. Estimating that small businesses under-report $141 billion annually, the IRS has begun using credit card data to target entrepreneurs to receive notifications of possible under-reporting, the Wall Street Journal reported in August. This can spell trouble for small businesses avoiding tax obligations, but the silver lining is entrepreneurs are often entitled to startup deductions which they forget to claim, suggests Knowing what you re allowed to write off can save you money, and help your startup survive until next tax season while growing into a thriving business. Defining Startup Costs The IRS lets you deduct a certain amount of capital expenses you incur before opening business operations. This deduction is meant for the phase of investigating how to start your business or preparing your business for opera


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