Business Expenditure and Deductions

Business Expenditure and Deductions

Jane’s Air Conditioning Service decided that this year was the year to

take over” the air conditioning business in her town. Beginning in

January, she started advertising her business (even though there was

snow on the ground), bought a supply of Freon, updated her vehicles and

bought new uniforms for her service technicians who were making house

calls.
Jane comes to you to determine how to optimize her

deductions in order to reduce her tax liability. What advice would you

give her as to the expenditures above (assuming they all took place in

the same year)? Be sure to also explain what may (or may not) be

capitalized and/or deducted.

2 hours ago

REQUIREMENTS

ACC 307: Federal Taxation  Reading Chapter 10: Property Acquisitions and Cost Recovery  ACC 307: Federal Taxatio

Answer preview…………

Owners of small businesses often overpay their taxes when they overlook some deduction. It is however, understandable should one consider the bulk U.S Tax code that contains about 70,000 pages (Smith & Parr, 2000). Small business owners may not have the time to go through all those pages or have the money to employ a professional auditor or accountant. There may be many obstacles Jane may face when trying to reduce the tax but there are ways she can legitimately mitigate it……….

 APA 314 words

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