Every dollar counts when you’re running a business. If you want to reduce your tax liability at tax time, you must remember to claim all of your tax deductions.
Along with a few jokes to lighten the mood, here are a few lesser-known tax breaks that small businesses can benefit from.
The IRS may allow you to deduct some of your home-related business expenses if you perform at least some of your work there. Your home office can qualify for a tax break that can be used to offset things like rent or mortgage payments, utility costs, and more. It’s important to remember to maintain some sense of perspective while working in your “office.”
If you drive your own car for work, you can deduct some costs associated with that use, including fuel, maintenance, and repairs. It’s important to keep in mind that a single road trip to the beach cannot be written off as a business expense.
Did you know that you can write off up to half of the money you spend on business-related meals and entertainment? Make sure you are genuinely talking business and not just stuffing your face.
Website development, social media marketing, and traditional forms of advertising are all examples of advertising and marketing costs that can be written off. There’s a delicate line between inventive and cringe-inducing in the world of advertising, so tread carefully.
If you must travel for business purposes, you can deduct the money you spend on airfare, hotels, and food. A $500 steak dinner ordered in your room might seem like a reasonable business expense, but the Internal Revenue Service might disagree.
Depreciation is a tax deduction for commercial assets used in the operation of the business, such as computers, equipment, and furnishings. The IRS will not buy your claim that your cat “provides moral support” for your business.
Insurance premiums are deductible if used for a legitimate business purpose, such as liability insurance. Keep in mind that the Zombie Apocalypse is not something that can actually happen; therefore, you shouldn’t get insurance against it.
Last but not least, if you own a small business, taking advantage of tax deductions is a fantastic method to cut costs. Just make sure everything is above board and that your deductions are reasonable. After all, the Internal Revenue Service (IRS) is the last thing you need.