If you’re a small business owner and dread dealing with taxes, know you are not alone!
With it, comes with the worry of audits, fees, and money owed. But while it can be stressful, it does come with benefits for business owners - like writing off all those business expenses to help minimize your tax bill. Let’s go over some of them!
Most businesses have to pay rent of some sort. Usually, businesses are renting buildings out like storefronts, warehouses, office spaces, and more. These all cost money in the way of rent. Luckily, business owners can write off the rent for their business on their taxes!
Along with rent, you are going to have to pay the utility costs for where your business is located. Electricity, water, and internet all cost extra money on top of rent. But not to worry, these can be written off too!
YOUR HOME OFFICE
Maybe you don’t rent a separate building for your business but you do have a home office. There is a tax deduction for that too! How much you can deduct depends on how large your home office is. You can calculate the deduction based off of the proportion of your office space compared to the total square footage and utility bills of your house. Have these numbers ready for your tax preparer when filing!
If you are driving for work, you can too deduct this off your expenses. If your vehicle is both for business and personal life, just make sure to log your vehicle costs (gas, repairs, maintenance) and the mileage for both categories.
For some businesses, work requires the owner or employees to travel. If you or your employees are traveling out of town, you can deduct both your transportation and lodging expenses. As long as the trip truly is for business purposes of course!
MEALS & FOOD
Meals and food that are related to your business are a few of those partially detectable expenses. Most of your meal expenses are deductible to up to 50%. This includes travel meals.
Insurance is a must have in business and luckily it is also something you can deduct on your taxes. Items like your business insurance, liability coverage, and your employees’ insurance can be a great deductible for you and help save on taxes.
Didn’t think you could write off the money you use to advertise your business? Well, you can! Types of advertising you can write off include social media, newspapers, digital ads, email marketing, and more.
Continuing education and personal development can be definitely expensive. Which makes it daunting and scary to invest in. Even though it is needed to advance your business. Thankfully, you can write off education that is related to your business - like conference tickets and online courses.
Just like on your personal taxes, you can deduct charitable donations from your business taxes as well. Just make sure you have the receipts to prove it!
It Doesn’t Have to Be Scary
Taxes don’t have to be scary. Keep track of your deductions and don’t hesitate to reach out to a professional if you need some assistance.
WRITTEN BY ADRIENNE ZIMBRO: ACCOUNTANT, CONTENT CREATOR, & ENCOURAGER