When you are just starting out on your journey to business ownership, there are many bumps in the road that you’re likely to come across. You will be scrimping and saving in every way to get up and running. A mistake that many startups make in the beginning is failing to take advantage of the tax deductions that are there for the taking. Propel Your Accounting is here to talk about tax deductions that all startups should be taking full advantage of.
Startups Should Be Taking Advantage of These Tax Deductions
As a startup, you will gladly accept any help you can get to hit the ground running. It is important that you aren’t missing out on any tax deductions that are there and ready for you to take advantage of.
– Startup Costs: There is a certain amount of money that is involved in starting a new business. The IRS allows startups to deduction up to $5,000 in startup costs as well as up to $5,000 in organizational costs. This can include a wide range of things like advertising, legal fees, market research and more.
– Equipment & Supplies: The equipment and supplies that you need to purchase to get started is always going to be tax deductible. If you need computers, printers, furniture and other supplies or equipment, you can take advantage of tax deductions.
– Marketing & Advertising Expenses: Advertising plays a huge role in your success as a startup. You will need social media accounts, a website, business cards and other means of advertising to get the word out about your business and appeal to more customers. This is all going to be tax deductible.
– Home Office: If you use a portion of your home to run your startup, you can deduct a portion of your mortgage. This is going to depend on how many square feet you use, and whether or not it is only used for your office rather than other functions in your home. However, if you have a home office, make sure you’re deducting it.
– Travel Expenses: Some businesses require a great deal of travel. If this is the case, there are several travel expenses that can be deducted including car rentals, airfare, meals, lodging and more.
– Training: There might be some training that is required in the beginning for your startup. If this is the case, any education or training that you participate in will be tax deductible as long as it is related to your business.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you are in need of an accountant to help you get your startup off the ground, you can turn to Propel Your Accounting. We will help you reach success as we help you with your tax preparation, bookkeeping needs, and business consulting. It is our goal to help your business not only grow but succeed as well. Call us today!
