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Issue link: https://dayspamagazine.epubxp.com/i/109233
PROFIT CENTER ���Always make sure to consider how much you���re going to owe when you pay yourself, and plan ahead for that tax bill, come April.��� purposes (for purposes other than commuting to work)? In both cases, this is a deductible expense, and you can take one of two approaches in accounting for it. 1) You could simply tally up the actual expenses of using the vehicle: cost of the auto, insurance, repairs, maintenance, depreciation and so forth. Then, you could deduct those expenses on your tax forms. 2) You could keep track of mileage used for business purposes. (For 2012, the standard mileage rate is 55.5 cents per mile.) Just make sure you���re keeping accurate records if you use your auto for both personal and business trips��� personal use of the vehicle is, of course, not tax-deductible. If you launched your business in 2012, you���re in luck, as the IRS permits new owners to expense the cost of starting a business. After all, before you even opened your spa���s doors, you harbored costs involving utilities, furniture and of���ce supplies, and marketing your business. Once your spa is up and operating, these are all considered, simply, expenses. But until then, they are capital expenses. Therefore, you can deduct up to $5,000 in your ���rst year. And any costs greater than $5,000 can be spread out in equal amounts over a 15year period. FORGET-ME-NOTS There are some costs of running your spa that many business owners forget about, come ���ling time. For example, entertainment dayspamagazine.com/freeinfo ��� Use FreeInfo #45 96 DAYSPA | MARCH 2013 ��ISTOCKPHOTO.COM IF YOU���RE A ROOKIE