Tax deductions for owners of small businesses

There is a lot to like to owe a small business, but we would lie if we said that he had not come with his right part of challenges, especially around the tax season. Understand How to manage quarterly taxes To pay for what you need at IRS, the learning curve can be stiff.

The process is not so bad, however. For example, certain tax reductions and deductions are granted to owners of small businesses and self -employed workers whose regular employees do not benefit.

If you do not already know the tax deductions that accompany the owner of a small business, you will want to read more. Here are twenty main tax deductions for owners of small businesses who could surprise you:

Advertising

The costs associated with the advertising of your business are fully tax deductible. This can include things like the impression of business cards, the launch of a new website, social media campaigns and even the sponsor of a local event.

Banking fees

Banking costs such as PayPal transaction costs, transfer fees by wire and service fees are 100%deductible. Keep in mind that this only has business bank accounts and does not work for personal bank accounts or credit cards.

Business meal

Business meals are 50% deductible as long as they are not considered sumptuous or exaggerated. Keep in mind that meals for employees, such as pizzas, are considered 100%deductible.

Car

If you have a vehicle that you use entirely for businesses, all associated costs are tax deductible. If you use your car for personal and professional use, you can always deduct certain costs, but only the costs associated with professional use.

Charity

You cannot deduce charity donations as a business expenditure, but it is possible to deduct these donations to your income tax return for individuals as long as they have been made in a qualified charitable organization.

Childcare and dependent care

If you have children under the age of 13 or a dependent person who is mentally or physically unable to take care of themselves, you could be eligible To deduce a certain amount of what you spend for childcare services and care for dependents during work.

Interest of the credit card

If you have opened a credit card specifically for your business, any credit card interest is completely tax deductible. This also applies to other interest payments (such as a commercial loan) as long as you can prove that you intend to repay the loan entirely.

Depreciation fees

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Depreciation fees are considered the cost associated with the normal wear and tear of machines and tools related to companies. Depending on the cost of the articles, you can deduct the full cost of the article in one year or extend it over several years.

Education

Things like tuition fees, books, subscriptions to trade -related publications and workshops to increase your skills set and your expertise are all tax deductible as long as they are linked to your field and to your business immediate.

Social benefits

Being a good employer means treating your employees well – and you can really deduct most of the benefits. Things such as employee health services, successful rewards and education assistance are all tax deductions for owners of small businesses.

Independent work

If you do not yet need full-time employees, but you always enlist the help of the freelancers, the costs associated with the independent workforce is also a tax deductible cost.

Health savings account

Did you know that a health savings account is tax deductible for owners of small businesses? You can use your health savings account until retirement for things such as visits to the doctor, subscriptions to the gymnasium and even massages.

Home office supplies

Home office supplies – from your laptop to your pens and pencils – are all considered to be tax deductible for small business owners and solopreneurs.

Internet and phone bills

The use of the Internet and telephone linked to companies is 100%deductible, but keep in mind that if you use your phone for members and businesses, only the amount of the dollar used specifically for companies can be deduced .

Legal fees

The legal costs and services required to carry out your business are tax deductible. This also applies to accounting and accounting services required to maintain your small business on the move.

To rent out

It doesn’t matter whether you rent an office space or if you run your small business from your apartment, the rent is considered to be tax deductible. Keep in mind that you cannot deduct the total amount of your apartment if you work at home, but rather the percentage you use for business.

Contributions to retirement

You receive a tax cancellation for each dollar for each dollar that you contribute to your retirement account (up to a total of $ 77,000). You can also establish an additional pension plan through your business which will allow you to contribute even more.

Tax preparation fees

Small business owners should always work with an accountant during the tax season to ensure that everything is properly deposited. Fortunately, all tax preparation costs and services are also tax deductible.

Travel expenses

If trips are part of your business needs, you will want to save as many receipts as possible because there are many deductions available for business trips. As long as your trip is necessary for business, you can deduce everything, plane tickets and hotel costs to laundry and dry cleaning, advice and parking costs.

Public service costs

Public service costs such as heat and hot water are also tax deductible expenses. If your business works from your home, all the costs are not deductible but rather the percentage you use while you are working actively.

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