Taxing Times: Last Minute Tax Tips to Remember
From March 14 to April 1, Inc.com will post a new tax tip each work day to help you save on your 2004 taxes. Bookmark this page to read more last-minute tips as they're posted.
Before April 15th, it is important to work with your accounting team to identify tax deductions that will lower your tax liability. For instance, your out-of-town trip last year to work on a long-term project with a new client may have cost you a fortune, but there are deductions you can elect for those costs. Being tax savvy and carefully reviewing your business expenses from 2004 can make a big difference in what you may owe or receive from Uncle Sam. Fortunately, there are a number of old, revised, new and extended tax deductions that may lower taxable income and translate into greater tax savings.
Here, you'll find a tax tip a day through April 1. Use them to reduce your tax bill this year.
March 14, 2005
Business Start-Up Costs and Organizational Costs
Business start-up costs and organizational costs of corporations and partnerships paid or incurred after October 22, 2004, can be deducted up to $5,000. This is phased-out when start-up costs reach $50,000. When this happens, the amount of start-up costs are amortized over a period of 180 months. Also, the amortization period for certain business start-up costs and organizational costs paid or incurred after October 22, 2004, has been increased to 15 years.