Tax Deductions for Small Businesses Based in the United States
Running a business is tough, and you need all the breaks you can get. When it comes to the Internal Revenue Service (IRS), it’s no different. In fact, tax season might be the only time of the year where you have the best advantage at getting some of your business investment back. This is done with taking advantage of all of the business tax breaks available to you.
Success Tax Relief, a tax relief firm located in LaPorte Texas, has composed a quick list of tax deductions your small business can take advantage of.
- Home Office Deduction – Almost every seasoned taxpayer knows about the home office deduction, so much that the IRS has made some revisions to those who want to claim it. In the world of digital technology, almost anyone can manage a business from home. So in order for you to get the home office tax deduction, your business must earn a profit.
Keep in mind, tax laws change every year, so by the time the next tax season rolls around, this stipulations for this particular deduction may change. Again.
- Obvious Business Expenses – When you’re operating a business, expenses spent to keep the operation going can be deducted. This tends to go under the more obvious business expenses like:
- Accounting fees – If you’re not managing your books, someone needs to. Even if you are, it’s always wise to hire an accountant to verify everything looks good.
- Utilities – You can’t run a business without the bare essentials of water and electric. These types of expenses are absolutely necessary and can be written off as an expense. So be sure to keep all utility bill records.
- Mileage/Parking – You’re commute to work could be a costly one if you’re taking tolls and paying for parking, but guess what? You can write all of that off too! If you’re wondering how to write off your mileage rates, visit the IRS Standard Mileage Rates webpage here.
- Supplies – Another thing you can write off is the cost of goods sold. According to the IRS, these are the type of expenses that you can write off:
- The cost of the products
- The cost of storage
- Labor costs
- Entertainment – Any business breakfast, lunch, or dinner meeting including weekend conference trips, rental car expenses and hotel accommodations can all be written off as a business expense.
- Uniform Maintenance – If you’re required to wear a uniform to work, you can write off the expense of maintaining it. For instance, if you’re taking your uniform to the cleaners every week, then you should save the receipts so that you can write the total amount you’ve spent that year.
Wait! There’s More!
These are just a few tax deductions you can take advantage of when operating a small business. Other items like inventory, payroll, employee benefits, and continuing education can also be written off a business tax deduction.
Get Help Deducting Your Start-Up Costs
One huge tax deduction that most business owners may not know about is deducting start up costs. Contact Success Tax Relief to get more information on how to do this as well as all of our other services. Call us today at 877-825-1179. You can also ask us a question online.