With tax season right around the corner it can be easy to get a little flustered by all the tax rules, new changes, credits and deductions. Situations are much more confusing a high level small business owner. Read below to learn top small business tax deductions you should be dealing with your 2009 tax return.

Start-Up Costs
You are able to deduct the price of running your business on your taxes, but nothing can be deducted before your business opens its doors. You can deduct up to $5,000 in start-up and $5,000 in organizational costs for the first year of business. Expenses that aren’t deducted can be amortized over a 180 month period, which begins the moment you open your business. These expenses include researching the market, advertising, employee training, business travel along with other costs.

Auto Expenses
Lots of business people will merely take the standard mileage rate deduction, 55 cents per mile for 2009, because it’s easier to keep an eye on your mileage records, however, you could actually get a larger deduction should you keep an eye on everything, including repairs, maintenance, mileage, parking fees and insurance. You are able to only deduct the business part of your auto expenses if your car can be used for business and pleasure, so keep track of the mileage accurately.

Education
You can deduct educational expenses on your taxes only when they are associated with your current business or occupation. The expense can be deducted if you’re furthering your education to maintain or improve skills necessary for your job-not to obtain a job.

Equipment and Furniture
Some businesses can deduct the full cost of their equipment the year they purchased them rather than capitalizing them-meaning to deduct their cost over a number of years. You can deduct up to $250,000 of the price of new equipment in your 2009 tax return, however, many assets don’t qualify, such as real estate or property bought from a family member.

Advertising and Promotion
The cost of marketing, including business cards, Yellow Page ads, commercials, etc. is deductible on your 2009 tax return. Promotional costs that create business goodwill, such as sponsoring just a little league baseball team, will also be deductible so long as there is a definite connection between the sponsorship and your business.

Interest
If you used credit to finance business purchases, the eye on that credit is fully deductible. This goes for the eye adopted an unsecured loan. You just need to make sure you comply with the IRS’ rules should you borrowed money from the relative or perhaps a friend. Also, you have to prove that the money borrowed was only used for business.

Travel
With business travelling, you are able to deduct the price of your airfare, costs of operating your vehicle, taxis, lodging, meals and much more. You’ll want records for all of these expenses. If you’re combining business and pleasure, you can only deduct these expenses if business was the main reason for your vacation. However, you cannot deduct the price of taking your spouse or your family in your trip.

Entertaining Expenses
The IRS will approve the deduction of up to 50% of entertainment expenses for your business, however, you are required to follow these rules: it should be proportional to the business and business must be discussed (like a meal catered to work), or it must be linked to the business and also the entertainment occurs directly before or following a business discussion. Make sure when you are keeping records to make note of the company reason for these entertainment outings.

Professional Fees
Professional and legal fees are deductible, however, if the costs are part of your start-up expenses, you may want to amortize the price over 5 years.

Charitable Contributions
In case your clients are a partnership or perhaps a llc, your company can make a charitable contribution and pass the deduction onto you to claim on your individual taxes. If you own an organization, the organization can deduct charitable contributions around the company’s taxes.