Most Unheeded Tax Deductions
Amongst the chaos of the daily life of the American citizen, it is easy to overlook common tax deductions that will save you money at the end of the year. The deductions that are missed due to the stress of waiting until the last minute to do your taxes can possibly save you hundreds more dollars. Here are a few tax deductions that are commonly overlooked.
Throwing parties is an effective strategy for maintaining suitable relationships with your clients and attracting new business with associates. If you throw a party that is related to your business in any way, then you can use the money you spend on it as a tax deductible. However, it is important to remember that when it comes to entertainment, the IRS can be reasonably strict. In order for party expenses to qualify as a deductible, there must be a business discussion before, during, or after the event. Also, remember to document the event in the form of pictures, videos, or invitations.
If you have a new job and it is at least 50 miles from your old residence, then your moving expenses are tax deductible. It is important to remember that the IRS wants you to take the shortest possible route between your new job and your old residence, or the expenses will not qualify as tax deductibles. Also, you must work for a minimum of 39 weeks during the year from the moment you arrive at your new residence.
Vehicle expense are tax deductible if you are using your car for business, medical, or charitable purposes. If you owned or leased a vehicle in 2017, American citizens were able to deduct 53.5 cents per mile. By keeping detailed records, you can choose to use the actual vehicle expenses instead of the standard mileage rate. Lastly, the standard mileage rate may not be used for more than 4 vehicles simultaneously or any vehicle used as equipment.