Last-Minute Tax Deductions for Your Online Business

Hurry! You have until the end of the day on December 31 to purchase and pay for items for your eBay or other business and use those expenses as a tax deduction on your 2007 income tax return.

Some qualifying items that you probably need anyway, or will need soon, include items for shipping such as bubble wrap, padded envelopes for mailing, maybe a new postal scaleor even inkfor your printer if you print your own labels. In fact, if you need a new printerfor your business computer, this is the time to make that purchase.

Other tax deductible items that you might not have thought of include books for your eBay education, titles such as The Official eBay Bibleor How to Start and Run an eBay Consignment Business. If the information applies directly to your business, the books are deductible business expenses on your Schedule C.

Do you plan on joining a dropship service such as Doba or Shopster next year? Do it now, pay the fee by the end of the day on Monday, December 31, and that expense will also be deductible on your 2007 taxes. Speaking of fees, go ahead and pay your December eBay fees early; they’re deductible as well.

If you’re dreading gathering your business information in order to be able to complete your tax return, you may need a bookkeeping system like this one and yes, you guessed it, the price is a deductible business expense as well.

If you’re going to need these things anyway in the next few weeks, might as well make your business purchases now to take advantage of the tax deductions. Just be sure the items are paid for before January 1, 2008.

P.S. Disclaimer: This information is believed to be accurate but should not be considered definitive in your situation. Always check with your tax professional to determine the eligibility of items for business deductions.

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