When you own a small business, it is all about the bottom line. Any way to increase your income is a win. One thing that all small business owners should remember is that there are multiple deductions that can help lower your taxable income and put thousands of dollars back in your bank account. Knowing what these deductions are is the key. Propel Your Accounting is here to talk about some of the deductions that small business owners should be aware of.
Tax Deductible Business Expenses Small Businesses Need to Know About
While the list is pretty long when thinking about deductions for a small business, we would like to highlight today.
– Utilities: Whether you have a home office or a separate space for your business, you can deduct the utilities needed to keep your business running. If you have a home office space that is used only for business purposes, you will be able to deduct a percentage of your utility bill every month.
– Property Rent or Mortgage: If you are renting a property for your business, you might be able to deduct some or all of those expenses from your taxes as long as you don’t have equity in the property. You can also deduct some of your mortgage payments if you have a home office. Just make sure that you’re meeting certain criteria to qualify.
– Marketing: Any money spent on marketing such as business cards, signage, website design and more can be deducted from your taxes.
– Insurance: As a small business owner, there are likely several insurance policies that you have. These policies can be a deduction to take advantage of as well. Whether it is health insurance, liability insurance, auto insurance or other policies needed to protect your business, you can deduct them.
– Transportation Costs: Some small businesses might have a vehicle they use. You can deduct either the actual expenses of that vehicle or a standard mileage rate to lower your taxable income.
– Equipment: There is more than likely a great deal of equipment or machinery that is used in your small business as well. You can deduct all equipment and machinery from your taxes.
– Education: If you have needed additional education to grow your business, you can deduct the cost from your taxes. You will need to provide reasons for why they are necessary for your business.
– Software: There might be software that is necessary for the daily operations for your business as well. These subscriptions are also tax deductible.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
It is difficult to list all of the deductions that your small business could be taking advantage of. The best way to make sure that you aren’t leaving any money on the table at tax time is to work with the accountants at Propel Your Accounting. We will ensure that you’re lowering your taxable income as much as possible. Call us today!
