Ask a CPA

A business plan is comprehensive planning document which clearly describes the business developmental objective of an existing or proposed business. The plan outlines where the resources needed to accomplish the objective will be obtained and utilized. It should also guide you to act on your intentions and benchmark your steps along the way and be written on a format that allows for collaboration among your employees and partners. For more information go to FundingRoadmap.com

It summarizes both your vision for the company and your blueprint for the company’s operating success. The business plan is a written guide that details the start-up and the future direction of your company. For more information go to FundingRoadmap.com

The purpose of a business plan is to guide you in successfully operating a business. Preparing a plan forces the entrepreneur to consider all aspects of the business and to confront any problems the plan may show you along the way. FundingRoadmap.com

Each expense should be listed on a proposed budget sheet. Costs should be researched. Some items on your budget sheet will be "fixed costs" in that they have no relationship to the cost of your product or service. Other costs are called variable costs as they are directly related to the services or quantity of products you sell. To learn more go to FundingRoadmap.com

Political contributions are not deductible.

Common nondeductible expenses are:
Work clothes suitable for street wear
Commuting expenses
Credit card fees or Interest
Club dues
Divorce Legal fees
Political contributions
Cost of entertaining friends
Telephone expenses of first main line
Tax exempt income expenses
Funeral expenses
Gambling losses in excess of gambling winnings
Hobby expenses in excess of hobby income
Homeowner's association assessments
Pet and animal expenses
Residence repairs and improvements
Residence Loss on Sale
Life Insurance
Parking tickets and fines

Common Fully deductible deductions not subject to the 2% AGI limitation are:
Amortizable premium on taxable bonds
Casualty and theft loss from income producing property
Estate taxes on income in respect of a decedent
Gambling losses, up to the amount of gambling winnings
Special job related expenses of the handicapped
Unrecovered cost of annuities on a decedent's final return

Common deductions subject to the 2% AGI limitation are:
Employee business expenses including travel, 50% of meals & entertainment, phone, small tools, supplies, professional subscriptions and books, depreciation on business use of auto's and equipment, small tools
Safety equipment such as hard hats, gloves, steel tipped boots, gogles,
Educational expenses not claimed as a credit
Tax preparation and tax assistance fees
Union and professional dues
Job hunting
Tax preparation and tax assistance fees
Educational expenses not claimed as a credit
Seminar and Conferences that are business related
Appraisal fees on charitable donations
Credit card convenience fee for maintaining investments
Investment expenses
SEP,Simple,IRA custodial fees paid with funds outside the account
Legal fees for collecting taxable income
Loss on deposits in a bankrupt financial institution
Medical exams required by employers
Safe deposit box fees
Trust administration fees
Uniform purchase and maintenance if required and not suitable for street wear
Home office deductions

The dry cleaning and maintenance costs of your work clothes such as suits and dresses are not deductible. To be deductible the clothing must be not be adaptable to everyday wear and be required as a condition of employment. The dry cleaning and maintenance costs of uniforms and special clothing such as for nurse’s, police, and fireman are deductible.

Gambling losses are allowed as a fully deductible itemized deduction up to the amount of gambling winnings.