1. Credit Card Annual Fees and Finance Charges
Although it has been many years since taxpayers could deduct interest on personal credit, fees and interest related to a credit card you use for business are still deductible. Similarly, if you take out a personal loan and use the proceeds for your business, the interest you pay is deductible. You must, however, show that the money actually was used for business.

2. Expensing Deduction
For 1998, you may elect to expense the cost of up to $18,500 of qualified property such as equipment or machinery you place in service in your business. This means you can write off the entire cost of qualifying business property in the first year rather than depreciating it over a period of years. The expensing deduction is reduced dollar-for-dollar to the extent the total cost of qualified property placed in service exceeds $200,000 during the tax year.

4. Educational Expenses
Business owners may deduct the cost of any seminars, courses, or educational programs they take as long as the programs are ordinary and necessary expenses of the business.

5. Bad Debts
If you are unable to collect money someone owes your business, Uncle Sam allows you to deduct the amount of your bad debt-just so long as you take the deduction in the year it becomes partly or totally worthless.

6. Auto Expenses
Owning and maintaining a car can be expensive. That explains why many small business owners appreciate the opportunity to deduct some of the costs associated with using a car for business. Tax law allows you to deduct the actual costs such as gas, oil, insurance, repairs, maintenance and depreciation, or you can simply deduct 32.5 cents per mile, the IRS standard mileage rate for 1998. In either case, be sure you have the records to substantiate your deduction or begin pulling them together now.

7. Business Entertaining
If you entertain customers or clients, you can deduct 50 percent of the cost if the expense is directly related to the business and business is discussed, or "associated" with the business and the entertainment takes place immediately before or after a business discussion. The IRS no longer requires you to keep receipts in order to deduct business-related entertainment (and lodging) expenses under $75, but you still must maintain records so you can substantiate the deduction in the event of an audit.

8. Obsolete Inventory
Goods that cannot be sold at normal prices or in the usual way because of damage or changes of style may be valued for deduction purposes at bona fide selling prices, less direct costs of disposition. Take the time now to determine if you have any products or other goods that fall into this category.

9. Charitable Donations
Here is an added incentive to start cleaning the storage rooms. Corporations can generally deduct donations, including inventory, up to a maximum of 10 percent of the company's taxable income. This 10-percent overall contribution rule applies to S corporations as well.

Individuals, including sole proprietors and partners, are allowed higher contribution limits up to 50 percent (with regard to cash contributions) of taxable income. Be careful when donating inventory, however, because special rules apply.

10. Retirement Plans
Contributions to IRS-qualified retirement plans are tax deductible, providing you with a current benefit while helping to ensure a financially secure future. What is more, as a business owner, you can take current tax deductions for contributions to qualified retirement plans for your employees.

There may be additional tax deductions your business is eligible to claim. To be sure you have not overlooked any, spend time to consult with a CPA so you can take any necessary tax-related actions before the end of the year.