Five Tax Deductions Your Small Business Just Can’t Miss

Five Tax Deductions Your Small Business Just Can’t Miss

As a small business owner, you’re always looking for ways to save money. There are many ways you can do this. You can increase prices on your products or services, expand into a new market, or move into a more affordable office space. But, the very best way to save big money on your small business is to make sure you’re taking all the deductions you possibly can on your taxes.

You just have to know what those deductions are!

Here are five deductions that are easy to take that you just can’t miss.

Accounting and Bookkeeping

If you pay a professional to help you with your accounting, bookkeeping, or payroll, you can subtract those expenses from your taxes. But, that’s not all.

Tax preparation can be written off your taxes as well. Because you can deduct the costs associated with filing your taxes, it really is worth your time to hire a professional advisor, like Anderson Advisors. They can help you file your taxes at the beginning of the year, but they can also help you do tax planning for your business throughout the year, and it’s all tax deductible.

Advertising and Marketing

Creating an advertising and marketing plan can take a lot of time. It can cost quite a bit of money as well, especially if you want to pay for advertising on the internet, on the radio, or on TV. The good news is that it’s tax deductible.

Included in this category are things like business cards, brochures, and website creation. Paying for these items can increase the visibility of your business, and they can all be deducted from your taxes.

Business Travel

Making connections and attending conventions and other events are all great ways to get the word out about your business. That usually means hopping on a plane and doing some traveling, which sounds exciting, until you realize how much it’s going to cost.

If you’re traveling for business, a good chunk of your trip can be deducted. But not everything is deductible.

A few things that can be deducted include:

  • Plane, train, bus, and car rental fees can all be deducted, as can mileage, tolls, and parking fees
  • Hotel accommodations
  • Half of your food expenses
  • Conference fees, rental equipment, and registration fees

It can get a bit tricky because there are certain things you cannot write off. For example, if you use points to fly, your flight cannot be deducted, and personal deductions for things like gym fees and mini bars in your hotel room cannot be deducted either.

Insurance Expenses

Insurance for your employees can get expensive fast, but it’s even more expensive if you don’t have it. If you provide insurance to your employees, they’re probably very thankful, but you can thank Uncle Sam too because insurance expenses can be written off your taxes.

Not only can you write off health insurance costs, you can also deduct any insurance you have on your business or your business equipment. A few other deductible insurance expenses include:

  • Casualty insurance
  • General liability insurance
  • Business interruption insurance
  • Professional liability and malpractice insurance
  • Errors and omissions coverage
  • Workers’ compensation
  • Car insurance on work vehicles
  • And more

As is the case with many other deductions, there are limits to what you can file on your taxes.

Life insurance cannot be deducted for anyone in your company if you are the beneficiary. You would have to look into key person life insurance if you want this expense to be deductible. Disability insurance premiums are also unlikely to be tax deductible, but it is worth checking with your tax advisor just to be sure.

Reference Materials and Electronics

A lot of the stuff in your office can be deducted from your taxes as well. Anything you purchase for business purposes is fair game, including various reference materials and electronics.

Your computer is an obvious one, but you can also deduct internet and software expenses. If you use your cell phone for business purposes, it can be deducted, as can tablets. Just make sure you’re only claiming the portion of time that the device is used for business.

Think low-tech too! Any reading materials you purchase for your business can be deducted.

Tax time isn’t a time to dread—it’s a time to celebrate! That is, as long as you find every deduction possible. By keeping meticulous records and claiming every single deduction that’s possible, your business will save a lot more money than you thought was possible.

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Category Business