Small businesses can always use a few good tax writeoffs. So we recently came up with 5 tax writeoffs for 2010. Let’s jump right in:
Create jobs, get a deduction
If you hired new workers between Feb. 3, and Dec. 31, 2010, that didn’t merely replace people who left and who had been unemployed for more than 60 days, you can save 6.2 percent of your payroll tax. You can also get another $1,000 business tax credit in 2011 if you keep the new employees for 52 weeks or longer.
Use a cellphone, get a deduction
Cell phones were considered “listed property,” which is an item purchased for work or provided by an employer but that can be used for personal use, but only if you properly tracked them. As long as you kept track of their relative use, you could deduct the expense proportionally. But now if you provide your employees with cell phones or if you use one for business, you can now write it off directly.
Buy new equipment, get a deduction
The IRS is offering “bonus depreciation,” which temporarily allows small business tax deductions for equipment and a little something extra. If you bought new equipment, such as computers, office furniture and manufacturing equipment between Sept. 8, 2010, and Dec. 31, 2011, you might be able to write off 100 percent of the cost.