A business owner, you can deduct expenses incurred for the ongoing operation of the company, such as advertising costs. Not taking advantage of these deductions could lead to you paying more in taxes than necessary.
Here are 10 common deductions to consider:
- Auto Expenses
Use your car for business purposes? Keep a travel log, including gas, miles driven, and receipts because you can deduct the standard IRS mileage rate for each mile that you drive.
You can also deduct expenses specifically for the business use of your vehicle.
- Insurance Expenses
Any insurance premiums that you’ve paid for insurance for your business are a tax-deductible expense. This includes general business insurance, auto, and office.
If there’s a utility that you use solely for your business, it’s completely tax-deductible. For utilities that you use for business and personal use in your home, you may deduct a portion of the cost that’s based on how much of the utility your business uses.
- Professional or Legal Fees
If you’ve used an small business accountant service or lawyer for your business, these fees qualify as a deductible business expense.
- Office Supplies
Any supplies that you use for your business, such as printer paper, writing implements, staples, are tax-deductible as well as cleaning supplies that you use for business reasons. This also includes office furniture purchases.
- Interest for a Business Loan
Money that you borrow will typically require some type of interest payment. As long as you borrow the money from certified institutional lender (not a friend or family member), the amount of the interest is generally tax deductible.
- Bad Debts
Have a customer or vendor who never paid their invoice? As long as you can prove the debt was business-related, you can deduct money you’ve lent that wasn’t repaid.
- Reimbursements to Employees or Contracted Laborers
Wages that you pay to employees or payments you make to freelancers or independent contractors are a business tax deduction.
- Bank Fees
Bank fees you’ve paid for your business accounts, such as wire fees, overdraft fees, ATM fees, check printing fees, or payment convenience processing fees, are deductible businesses expenses.
- Software Subscriptions
If you have a software subscription for a program or app that your business uses, this is a qualifying tax deduction.
At TSAT, we know that a great businesses need to operate at high levels of service, accuracy, reliability, and throughput. We also know that the only way to ensure these things are achieved is to develop a comprehensive set of accounting and finance policies and procedures and to regularly train all personnel involved in the management and control of the company’s software. Only by taking steps toward accounting, quality assurance, and finances can a small business accounting department expand its business and improve its profit margins. It takes a little work to make sure that every aspect of small business accounting is running at full capacity, and we are here to help!
Here at TSAT, we are not simply tax preparers. We work with you to provide a 360-degree strategic financial advice, including small business operations and investment guidance. We will help you stay ahead of the curve when it small business or personal investments!
If you are a gig worker or small business owner looking to grow your business, TSAT’s AMAZING team considers much more than just your taxes!
TSAT’s Services will let you focus on your business’s core competencies! Whether you have a small business or you need help personally, TSAT can give you HOPE! Call us today!
Phone: (417) 208-2858
- Website: TSAT Accounting Solutions
- Facebook: TSAT Facebook
- Calendly : Quickly schedule a 15 minute call!
- Alignable: Connect with Us on Alignable!
“We want to Amaze our Clients not just serve them”. – Tabitha Smith