Overlooked Tax Deductions You Should Know About
CHICAGO — Every year, millions of people and businesses overpay their taxes because deductions are overlooked or, in most cases, the taxpayer is simply unaware of them.
Because of this, this month's Business of the Business from Tornado Industries, manufacturers of a full line of professional cleaning equipment, provides this list of commonly overlooked tax deductions:
- State sales taxes. If you live in a state with no income tax, you often can deduct state sales taxes paid. However, if your state does have an income tax, you cannot deduct both.
- Out-of-pocket charitable deductions. Keep your charitable receipts. If you give a charity a $20 gift, for instance, it may be deductible.
- Moving expenses. If you move more than 50 miles for a job or for your business, moving expenses often can be deducted.
- Points. With home sales up, if you buy a house, you can deduct the "points" paid on the loan; if you refinance, you may be able to deduct the points if the proceeds are used to improve your home.
- Child care expenses. The credit for child care expenses is often overlooked. This is a tax credit, not a deduction, but is well worth looking into.
- Training and education. Because training and education are such a major part of the professional cleaning industry, cleaning pros should be aware that charges for training-and even some of the related costs such as getting to the training center-often are deductible.*
For some deductions, specific conditions may apply. in order for the deduction to be taken. In all cases, ask a tax professional if you qualify for any of these overlooked deductions.
Further, you should understand exactly what a tax deduction is. Just because a deductible item costs $100, for instance, that does not mean the full $100 is deductible off of your income tax.
Instead, the deduction is usually based on your tax bracket. For example, if you are in the 20 percent tax bracket, $20 of that $100 is deductible. Again, always consult with a tax professional to be sure you are taking the correct deduction.
The Business of the Business Advisory is designed to help building service contractors operate their businesses more efficiently and profitably.
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Available For Interviews And Industry Commentary:
Tornado Industries President Michael Schaffer is available for interviews and industry commentary by calling (630) 818-1300
About Tornado a Tacony Company
Tornado Industries has been engineering quality cleaning equipment for more than 80 years. The company has a long history of developing innovative products and applying the latest technology to increase productivity, reduce costs, and improve safety. Tornado prides itself on always being on the cutting edge of cleaning solutions. Many of the company's products are manufactured in the United States with domestically and globally sourced parts.