By DeVante’ Branch
We can all agree that owning and running your business is no easy task. As a small business owner, you have to do everything for the business, like keeping track of the inventory, making sure bills are paid, and maintaining your bookkeeping and records. Doing all of these things can be very expensive, and money can be scarce at the end of the year. Luckily, there are tax deductions that you can claim as owners of small business. This will save you money, and possibly give back money to your business. Here are some tips that could save you a lot of money during tax season:
Some of the more looked over tax deductions are rent and car/ truck expenses. If you are leasing a building for your business, the rent that you have paid for the year is fully deductible. The car/ truck expenses, like repairs and oil changes, are also fully deductible. Also, the miles that are put on this car for work-related travel are deductible. Currently, for every mile that is driven, 57 cents can be deducted. All of these deductions will help lower your adjusted gross income, which lowers your tax liability.
Expenses that can help the business now will also be a deductible later. You may need supplies to help make your product, and all businesses need electricity and other utilities to be able to operate properly. All of the funds spent on essential business expenses are fully deductible. In addition, insurances purchased to cover business liability, such as health or property tax are eligible to be deducted up to 50%.
There are many other deductions that can help your business, such as advertising, traveling fees, and even legal and accounting fees, and many others that are all fully deductible under business expenses. Normal expenses that are essential for your business to operate can end up as a benefit during tax season. With using all of these deductions during this tax season, you can save money that you can use to help grow the business in 2018.
Eligibility for deductions depends on your industry, size, and use of funds. You should always talk to a tax advisor or accountant prior to submitting your taxes. When filing, you can also use services that scan your filing for additional deductions. Be sure to also review your membership benefits with chambers of commerce, business credit cards, and other associations as they may offer discount codes or special offers from local tax advisors.
Looking for more information about deductions on healthcare, property, or small business? Here are some additional articles worth reviewing: