Complete Tax

The primary way to rreduce taxable income that is subject to tax is to take full advantage of all available Federal tax income deductions, both business and personal. In order to do this, you must become aware of what is deductible and what isn't, and the special rules that apply to certain types of deductions such as meals and entertainment, automobile expenses, and business travel.

In many cases a business owner can deduct benefits that would otherwise be classified as nondeductible personal expenses. In order to effectively reduce taxable income, don't overlook the possibility of purchasing health insurance, investing for your retirement, or providing perks like a company car through your business.

But do remember that claiming some kinds of deductions may have a tax impact in later years. An example of this is the recapture of certain depreciation deductions upon the sale of business property.

Learn about other deductions in the Tax Guide such as:

• Family Tax Credit
• Education Tax Breaks
• Child Care Tax Credit
• Dependent Care Tax Credit
• Real Estate Tax Deductions