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TAXES
Savvy strategies to help reduce your taxes
Timing Tax Deductions
If you operate your business on a cash basis, you claim tax deductions in the year you actually pay expenses. If you pay an expense with a check, your payment is considered to occur as of the date on the check. If you pay via credit card, the payment is deemed to occur as of the transaction date on the credit card receipt.
Sales Tax Deductible
On your personal federal tax return, you can’t deduct sales taxes you paid throughout the year. But, you can score a sales tax deduction on your business return.
If you pay sales tax on an item purchased for your business—and if that item is allowed as a business deduction—then the sales tax you paid on the item is also allowed as a deduction.
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