Janes Air Conditioning: Business Expedenditures and Deductions
Janes Air Conditioning: Business Expedenditures and Deductions
May 20, 2016 by
Janes Air Conditioning: Business Expedenditures and Deductions
Janes Air Conditioning Service decided that this year was the year to take over the air conditioning business in her town. Beginning in January, she started advertising her business (even though there was snow on the ground), bought a supply of Freon, updated her vehicles and bought new uniforms for her service technicians who were making house calls.
Jane comes to you to determine how to optimize her deductions in order to reduce her tax liability. What advice would you give her as to the expenditures above (assuming they all took place in the same year)? Be sure to also explain what may (or may not) be capitalized and/or deducted.
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