What pest management firms need to know about Uncle Sam, taxes and write-offs for the 2010 tax year.The more savvy you are when it comes to taxes, the more money you will have in your pocket at the end of the year. The tax code allows you to deduct costs of doing business from your gross income. What you are left with is your net business profit. Thisis the amount that gets taxed. It follows that knowing how to maximize your deductible business expenses lowers your profit and therefore your taxes. The income tax rules suggest that an expense must be "an ordinary and necessary expense of carrying on atrade or business that is paid or incurred in the tax year." In practice, "ordinary" usually refers to expenses that are ongoing, such as fuel for the trucks or chemicals that your technicians apply, but can also mean something you pay once, such as theinstallation of Internet lines in your office. As long as these deductions are reasonable, which the IRS states is based on the facts and circumstances of each particular situation, its probably a safe deduction.
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