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.
