If you are the owner of your own business, you may be dreading tax time. While it's very likely that you will owe taxes once the year is finished, know that there are many deductions that you can take advantage of to lower the amount of taxes that you owe. Consider these deductions for your small business.
The typical small business, either new or established, will have costs associated with purchasing equipment during the year. It's actually possible to use these expenses to lower the amount of taxes that you owe. Know that there are tax codes that will let you deduct the cost of certain kinds of equipment within the year it was bought for your business.
Of course, there are restrictions on what kind of items are tax deductible, and it can change every year. Work with an accountant that is familiar with what can and cannot be deducted, so that all of your qualifying equipment expenses are counted.
One of the biggest costs associated with running a business is advertising. If you just launched your business, you may have spent more on advertising than you will in future years. Thankfully, advertising costs will be tax deductible, and it includes things like sponsorships, business cards, websites, and brochures.
If you paid for something to keep your business in the public eye, chances are that it can be deducted as an advertising expense. The main exception would be lobbying; any related expenses would not be tax deductible.
Does your business involving you driving around town a lot? You better be keeping track of those miles because when you travel for a business related activity, it is tax deductible. If you are using actual expense reimbursement for your travel deductions, you need to keep a record of all the driving that you have done for your business. If not, then you can use a standard mileage deduction method. If you do a lot of driving, the standard method is typically lower than what an itemized deduction would be.
Professional and Legal Expenses
Did you need to join a professional association, obtain a permit or license, or seek the help of a professional for your business? Even hiring an accountant to help you with your tax deductions can be counted as a tax deduction.
Use this to your advantage, and hire an accountant that can help maximize the deductions you receive by using these methods and more.Share