When running a business, tax deductions are always a huge part of writing things off. I always look at a tax deduction as saving money, because if you think about it. You’re already paying 30%+ to the government, you’re saving that 30%+ when you write something off. So, you can always look at something from a sales perspective.
I’m not a tax expert and nor do I pretend to be one, but these are some tax deductions that you can consider for your small business. Always remember to consult with a tax professional if you have any questions.
- Your office use: If you run your business out of a home bedroom, or portion of the home, you can technically write off electric, heat, and other bills that pertain to that portion of the home. If your business say, takes up 30% of your home, you could write off 30% of your heating bill.
- Your car: If you conduct business use with your car, you can write off the mileage whenever you travel from point A to point B. Always make sure that you note how many miles that you’re traveling.
- Employees’ Pay: When you pay employees for the services that they perform, you can deduct their pay.
- Interest on loans: If you have a credit card, or loan, and you’re paying interest, this can be written off as well.
- Rent: When you rent out a building outside of your home, this again is considered a business expense. Be sure to write this off!
- Insurance: If the insurance is related to your business, you can write off your business office insurance, and even car insurance if it’s for the company.
- Education: Let’s say that you’re going to educate yourself further. If it helps you with your business, you can write off classroom activities, seminars, and more.
- Miscellaneous fees: Let’s say that you consult with someone such as a lawyer, tax profession, or someone else. If it’s related to your business, be sure to write this off!
- Any equipment: Whether you need a new computer, or you need a copy machine. Again, if it’s a part of your business, you can write it off.
- Charities: If you donate any money to a charity, you can deduct this from your taxes as well.
The list continues on. What you really want to do when you deduct your taxes is to just ask yourself this simple question, “Is it related to your business?” If it is, you’re more than likely going to be able to write it off. Just make sure you’re not stretching it and also make sure that you’re playing it safe.
For more information, visit this great Business.gov article for more information regarding IRS policies.