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11 30 2016

11 30 2016

Identify Tax Deductible Business Expenses

Is That Tax Deductible? National Funding is committed to helping small business owners expand their businesses. This video will introduce you to the fundamentals of small business taxes. Through case-by-case scenarios, you’ll learn how to identify deductible expenses for your own business.

>> HOST: Welcome to “Is That Deductible?”

[Game show music]

>> HOST: A game where one small business owner faces off against their CPA to try and lower their business taxable income by claiming expenses on their return!
>> HOST: Let’s meet today’s players: Jack, owner of Jack-of-all-Trades Handyman service.

[Light applause]

>> HOST: …and his super CPA Lori.
>> HOST: All right, let’s start the game with round one. Jack brings his dog, Barkley, with him to work everyday. Are Barkley’s toys, treats and vet bills deductible?

>> LORI: No!

[Ding]

>> JACK: Yes!

[Buzzer]

[Cheering and applause]

>> HOST: Sorry Jack, even though Barkley is your company’s mascot, he’s not on the payroll, nor does he qualify as an employee.
>> HOST: Moving on to round two. Jack bought a new truck to haul equipment, tools and materials to and from job sites. But, he also uses it as his personal vehicle, is his new truck deductible?

>> LORI: …Yes!

[Ding]

>> JACK: Yes!

[Ding]

[Cheering and applause]

>> HOST: That’s right! Because Jack uses his truck for work, it’s considered an “ordinary and necessary” capital expense that is deductible.
>> HOST: With Jack on the board, let’s see how he does in round three.
>> HOST: Hoping to lock in a big contract, Jack took the execs out for a fancy lunch. He ended up winning the bid—but the lunch cost $350! Is that deductible?

>> LORI: Yes!

[Ding]

>> Jack: Yes!

[Ding]

[Cheering and applause]

>> HOST: That’s right! Because this was an “all-business” lunch that helped Jack win the bid, it’s deductible!
>> HOST: Looks like Jack’s got the hang of this—can he keep it up in round four?
>> HOST: Jack and his work friends go on a weekend fishing trip. Because he went with people from work…is that deductible?

>> LORI: No!

[Ding]

>> JACK: Yes!

[Buzzer]

[Cheering and applause]

>> HOST: Ooh, sorry Jack! Just because people from work were there, the trip wasn’t a necessary part of doing business.
>> HOST: All right folks, let’s see if Jack can bounce back in today’s final round: office furniture and décor.
>> HOST: Winning that big contract meant hiring more staff, moving to a bigger office and buying nicer furniture and décor. Is that deductible?

>> LORI: Yes!

[Ding]

>> JACK: Yes!

[Ding]

[Cheering and applause]
>> HOST: Yup, Jack can claim all those business-related relocation costs and office furniture expenses on his return!
>> HOST: Congratulations, Jack! You’ve lowered your taxable income! Thanks for playing!
>> HOST: Learn more about Section 179 Business Taxes, or call 888.733.2383.

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