Top Tax Deductions for Your Small Business lists a few items and services at your business’s everyday disposal that could be tax-deductible, earning you a few more dollars in your pocket during tax time.
Travel can be a deduction for your business. Gas mileage for your car can be deducted by the IRS provided that your vehicle is used for business purposes only. If your job requires you to relocate, then some moving costs will be deducted as well. For overnight business trips, Operating Expense: Deducting Travel Costs states that expenses, such as airfare, accommodations, and rental cars, can be deducted. For example, if you are traveling within the United States, these expenses are deductible as long as half the trip is business-related.
Expenses of running your business can also be deducted. These include the basic necessities of operating a business, such as office supplies, furniture, advertising, and utilities. These can only be deducted technically after you start your business.
Education can be a tax deduction if classes and training are taken by the employees to maintain or improve skills and methods within that business.
Your customers’ bad debt could also be deductible for your business. If your business sells goods rather than provides a service, the cost of the goods that are sold to but aren’t paid for by the customer can be deductible. For businesses that provide a service, time spent on a non-paying customer cannot be deducted.
As long as credit card purchases are made for business purposes, interest on that purchase can be tax-deductible. Also, personal loans borrowed and used for the business is also tax- deductible.
Legal and professional fees, such as those paid to lawyers and tax preparers, can be considered as deductibles for the year incurred.
There also a few deductions that business owners easily let slip through their fingers. Examples of these forgettable items include, but are not limited to, postage, parking, promotion and advertising, bank service charges, taxi cab fare, & commissions. Fees for commodities, such as consultants and credit bureaus, tend to be overlooked also.
Basically, any materials bought, any services used, or any decisions made for the sake of the business can be considered tax-deductible. With all of these deductions filed, your business will earn a hefty tax refund. This is simply due to the fact that if a business takes advantage of these deductions, then it will have a profit that won’t be taxed too high.