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Issue link: https://dayspamagazine.epubxp.com/i/109233
PROFIT CENTER Equipment: The American Tax Relief Act of 2012 can be helpful, at least as far as your spa equipment is concerned. Section 179 allows for major deductions of equipment purchased in 2012. And since Congress hurdled past the ���fiscal cliff��� at the beginning of this year, you can now deduct up to $139,000���that figure used to be capped at $25,000. The limit on capital purchase deductions is $560,000, and you can also take a bonus depreciation of 50% if you bought brandnew, rather than used, equipment. Keep in mind, operational costs on your equipment and physical space can save you money, too. Julie Knight, vice president of ���nance and operations with Coho Creative, a Cincinnati-based brand consulting ���rm, advises owners to ���deduct the full expense of all repairs and maintenance expenditures your spa incurred in 2012.��� Therefore, it���s important to maintain concise records throughout the year. Keep track of each expense, because even the minor ones can add up. Leases: The physical space you occupy just might provide you with a tax break! Knight notes that tax COMMONLY OVERLOOKED BUSINESS EXPENSES Behold the many deductions that spa owners typically fail to recognize, come tax time. Whether you prepare your own taxes or outsource the task, use this as a checklist to ensure you garner each and every available deduction: ��� Bank service charges ��� Books, videos, and magazine subscriptions related to your business ��� Business gifts ��� Business travel (taxi, parking fees, tips, shuttles, etc.) ��� Cleaning supplies ��� Clothing required for work purposes ��� Consultants and trainers ��� Food, drinks, and snacks provided for employee or guest use ��� Insurance premiums ��� Legal fees ��� Of���ce supplies ��� Petty cash ��� Postage ��� Professional association dues ��� Tax preparation fees ��� Trade shows, conferences, and similar events dayspamagazine.com/freeinfo ��� Use FreeInfo #41 92 DAYSPA | MARCH 2013