Bail Agent Taxes: 6 Last-Minute Deductions
- April 09, 2012
- by AboutBail Staff
- Business Tips
Editor's not: The information included in this article is general and should not be substituted for professional tax advice. Though AboutBail encourages you to consider these deductions while preparing your taxes, please consult with a tax advisor or attorney before filing for these deductions.
As bail agents prepare for April 16th, the last day for filing taxes, they may wonder whether or not they’ve missed out on any deductions. In a recovering economy write-offs both large and small can have a significant impact on your business, so it’s important to take advantage of any deductions for which your agency qualifies. If you’ve already taken the time to organize and evaluate your expenses, make sure you’ve included the following deductions.
Here are 6 last-minute tax deductions for bail agents:
- Ordinary expenses
According to the Internal Revenue Services (IRS), ordinary and usual expenses include bank service charges, credit bureau fees, costs for parking, meters and postage and casual labor and tips. Be sure to visit the IRS website and consult with your accountant to find out more about tax deductions for ordinary expenses. - Association memberships
Bail agents who are members of the Professional Bail Agents of the United States (PBUS) or their state associations should take advantage of the association membership fee tax deduction. Other association-related write-offs include registration fees for conventions, conferences and meetings. - Advertising fees and marketing expenses
In any economic climate bail agents will have expenses for marketing their business. Investing in sophisticated marketing is a key component to achieving business growth, and luckily expenses for marketing and advertising are often deductible. Some qualifying expenses include: - Billboards, posters, brochures and other advertisements
- Promotional expenses including sponsorship, contests, television and radio advertisements.
- Expenses for marketing collateral including business cards
- Online network listings (this includes your AboutBail listing!)
- Expenses for creating and maintaining your business’s website
- Continuing education
If education is legally required to obtain licensing or certification for your industry, any expenses for associated education can be deducted. Additional education that will improve the skills necessary and essential to your position also qualify, including those for Continuing Education Credit credits and other technical or licensing-specific courses. - Business-related travel expenses
Bail agents who attend association meetings should hold onto their receipts as travel and expenses for association meetings can be written off. These deductible travel expenses include air and cab fare as well as costs for a rental car, hotel room, entertainment and meals. If you travel to recover a fugitive or to meet a client you may qualify for additional deductions specifically for mileage. - Charitable donations
One of the great ways to get recognized in your community is through making donations to charity. Monetary donations as well as those of goods like canned food, park benches or school supplies are often tax-deductible, depending on whether or not the donation is made to an IRS-recognized charitable organization. Nonprofit schools and hospitals, veteran groups and religious groups are all examples of IRS-recognized charities. Some well-known eligible organizations include The Salvation Army, Red Cross and Boy Scouts. Donations to government entities also qualify provided the donation is used exclusively for public purposes.
As professionals who qualify for many less-common deductions, bail agents are more susceptible to an audit. Holding onto receipts and keeping paperwork organized and updated will make the process of filing your taxes easier and relieve some of the stress should you find yourself facing an audit. Hopefully these 6 tips will help your bail agency get the most out of this year’s expenses, but before you start adding up your deductions check with the IRS website and your accountant to make sure you qualify.
Join AboutBail
Looking to grow your bail business? Get in front of potential customers by joining AboutBail’s trusted network of local, pre-screened bail professionals.
