Small Business Tax Information

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Taxes Overview

As a small business owner, it is important that you understand how the tax system works—it will have a direct affect on how much money you take home. Even if you choose to hire an accounting professional to prepare your taxes, you should know the general principals of taxation.

What Items or Expenses are Deductible?
Any assets or expenses that are used with the expectation of making money are tax deductible. For example, you can deduct your computer or car (if they are used solely for business purposes) or any other items necessary to run your business.

What Items or Expenses are NOT Deductible?
In general, your business cannot deduct items or expenses that are not used with the expectation of generating income. For example, a computer used by your family is not deductible. Other non-deductible items include traffic tickets, clothing (unless it is a uniform), your home telephone line, and money spent for the purpose of conducting business in an unlawful manner, such as bribes.

There are New York state and federal resources that can answer your questions about taxation.

You might be put on hold for a while so make sure you make a list of questions before you call them. Once they answer the phone they are helpful and will answer your questions quickly. Make sure your questions are specific and clear, do your research before you make the call.

The IRS contact number:

-For business 1-800-829-4933
-For individuals 1-800-829-1040

New York State Department of Taxation and Finance:

-Business Tax Information Center: 1-800-972-1233
-Personal Tax Information Center: 1-800-225-5829
-for online assistance click here

For more information on small business taxes proceed to the next section.


Small Business Taxes