How Does A Business Write Off Work?

Allied Irish Bank, one of the two major mortgage lenders, is in the final stages of formulating its strategy to offer debt write offs on some of its troubled loans

Allied Irish Bank, one of the two major mortgage lenders, is in the final stages of formulating its strategy to offer debt write offs on some of its troubled loans

Write-offs reduce the amount of taxable income you have. For example, if you make $100,000 a year and have $10,000 in write-offs, you would be taxed on only $90,000 in income. In some cases, tax write-offs can lower your federal income tax bracket, reducing the percentage you pay on your taxable income.

Peterson Acquisitions can help you “reclaim or recast” your write offs to show a net benefit or cash flow for you.

Tax deductions are not just for the rich and famous! If you own a business, a good business broker like Peterson Acquisitions knows how to uncover and highlight the deductions to which you are entitled. The key to tax deductions is itemizing.

You can’t deduct just anything you want, but there are specific things your business broker can help you deduct that you may not be aware of. Anything necessary and ordinary to run your business is a write-off.  If you must have it in order to run your business, it is a write-off.

Lending institutions charge a fee to get a business loan. The fee is expressed in points, which you can write off. If your business supports a charity, those funds can be tax deductible. Office equipment and supplies, the costs of business vehicles and their upkeep can be deducted. There are literally dozens of things your business can write off.  A business broker can point out write-offs that will save you money and increase the value of your business.

Call Peterson Acquisitions and start planning today for what you will write-off tomorrow.