Sure, retirement's a long way off, but you need to plan right now. Plus, the IRS gives you the incentive by making contributions to certain pension plans deductible. Eligible plans include the following:
Simplified Employee Pension (SEP) plan
Savings Incentive Match Plan for Employees (SIMPLE)
Qualified plans (i.e., Keogh and self-employed 401(k) plans)
And if you're just about to start one of these plans, you may qualify for a 50% tax credit on the first $1,000 of your set-up costs.
Other Deductions You May Qualify For
Interest Expense
Receiving a loan to help run your business? You may
be able to deduct the accruing interest. However, make sure both you and
the lender understand the loan is not a gift and needs to be repaid.
Bad Debt Expense
Do you have a customer or client that owes you money but
is unwilling or unable to pay? If the bad debt amount was previously
reported as gross income, you might be able to deduct it during tax
season. Just be certain the debt's business related and not of a personal nature.
Legal and Professional Fees
Don't forget the payments to your lawyer and
accountant for services directly involving the operation of your home business.
Of course, we've only touched the surface. Tax laws are quite
complicated, and understanding them often requires expert advice.
Therefore, speak with your accountant before making difficult tax
decisions.