Maximizing Your Savings: 92 Small Business Tax Deductions to Take Advantage Of
As a small business owner, saving money is a top priority. One way to do that is by taking advantage of tax deductions. Tax deductions are expenses a business can subtract from their taxable income, which can result in a lower tax bill.
In fact, there are 92 small business tax deductions available that could help you save big on your taxes. These deductions are grouped in various categories; below are some of the most common categories with examples of deductions you may be eligible for.
Operating Expenses
Operating expenses are costs you incur to keep your business running. Examples of operating expenses include rent, utilities, and office supplies. Some tax deductions in this category are:
– Rent or lease payments for business property
– Electricity and gas bills
– Telephone and internet bills
– Office supplies like printer ink and paper
– Computer software and subscriptions
By deducting these expenses, you can save a substantial amount on your taxes.
Salaries and Wages
As a business owner, you’ll likely have employees. You can deduct their salaries and wages, along with any benefits you provide, such as health insurance and retirement plans. Other eligible deductions in this category include:
– Bonuses
– Commissions
– Payroll taxes
– Worker’s compensation insurance
Be sure to keep accurate records of all employee-related expenses to ensure you don’t miss out on any deductions.
Travel and Entertainment
If your business requires travel, you may be eligible for deductions on expenses incurred during your trip. Eligible deductions may include:
– Airfare and transportation costs
– Lodging expenses
– Meals and entertainment costs
To qualify for these deductions, the expenses must be directly related to your business activities. Keep detailed records and receipts to ensure you can substantiate your claims in case of an audit.
Home Office Expenses
If you work from home, you may be eligible for deductions on certain home office expenses, such as:
– Rent or mortgage interest payments
– Utilities
– Home maintenance costs
– Internet and phone bills
To qualify, you must use a specific area of your home for business on a regular and exclusive basis. The IRS has specific rules for claiming a home office deduction, so be sure to consult with a tax professional before claiming this deduction.
Conclusion
In conclusion, taking advantage of small business tax deductions can lead to significant savings on your annual tax bill. By tracking your expenses, maintaining accurate records, and consulting with a tax professional, you can maximize your savings and keep more money in your pocket. Remember to take advantage of every eligible deduction to reduce your business tax liability.
