Are there other income tax deductions?
Yes, there are other income tax deductions. Examples include depreciation, net operating loss carryovers, start-up expenses, and many others. However, this discussion is for general information only and should not be treated as a substitute for advise on specific matters. You should consult you tax advisor to see whether the foregoing, or any other deductions, are applicable in any given income tax situation.
Home Business Income Tax Deductions
If you are running a business out of your home, you can deduct the amount of rent or mortgage paid for that particular room of your house. Additionally, you can deduct any mileage from your car if your car is a business car. While these deductions are available, they require a higher level of record keeping and typically open taxpayers up to a greater risk of audit. So, if you do wish to seek these deductions, be meticulous with your records such as keeping a mileage log on your car and a time log on your home office and consult with a tax specialist when filing your taxes.
Income Tax Deductions for Loss Carryovers
If you are a business owner that had an especially bad previous year, you can carry over the remaining loss into the next tax year. This is only applicable to business, not personal losses, and must be well documented. Just as with the home business deductions above, this could result is an increased risk of auditing, so always consult with a tax specialist.
Income Tax Deductions for Startup Expenses
If you are attempting to get a business off the ground, and the startup is especially rough, you can deduct these expenses from your income. The reason for this deduction is that the government understands that most startup costs for businesses come directly out of the pocket of the business owner. In order to avoid income tax audit possibilities with these expenses, keep accurate and complete records of all startup costs including trademark filings, patent filings, market research expenses, and any other costs to start your business.