Check with the IRS

Go straight to the ultimate source for information on deductions you can claim on your federal business taxes.

I recommend: The IRS Small Business and Self-Employed One-Stop Resource includes an overview of business expenses you can deduct. IRS Publication 535, updated each year, provides a detailed overview of deductions.

Use the proper forms

The forms on which you report your deductions depend on your company's legal structure: sole proprietorship, partnership, LLC or corporation. For instance, sole proprietors must file Schedule C or Schedule C-EZ of Form 1040; partnerships must file Form 1065; corporations must file Form 1120-A, 1120 or 1120-S; and home-based businesses must file Form 8829.

I recommend: Find the proper forms for filing your business deductions at IRS.gov.

Know your home-based tax deductions

Businesses run from the home are eligible for a variety of deductions, including deductions for a home-office, cars, furniture, equipment, supplies, business travel and more.

I recommend: Download an e-book on Home Business Tax Deductions or take a look at SmallBusinessBrief.com for 10 deductions home-based businesses can claim.

Stay within the law

Don't tempt fate by overstating deductions or attempting to claim a deduction for expenses that aren't allowable.

I recommend: Complete Tax provides a list of common business deductions as well as a list of nondeductible expenses. Bankrate.com offers a list of a dozen deductions you might forget about.

Get tech help

Business tax software programs can help guide you through the process of recording and reporting deductions.

I recommend: Ask which software program your accountant or CPA recommends or check out one of the leading software programs, Turbo Tax, which also features a Deduction Finder to help you zero in on deductions you may have forgot.

Hire a professional

Running a business 24/7 doesn't leave a lot of downtime for learning about tax deductions. To make sure you're taking advantage of all the deductions you're entitled to and that you're reporting them correctly, get help from a CPA or an accountant.

I recommend: Find seven tips for hiring a tax pro from Microsoft Small Business Center and search for a qualified professional at Accountants World or the CPA Directory.