5 Tax Deductible Expenses for Your Small Business
Something no one likes doing is paying income taxes. This is doubly the case for small business owners. Running a small business is hard enough on its own. Having to send a large portion of your meager earnings to the government can feel like armed robbery. Thankfully, some parts of the tax code were written to benefit small business owners. This includes deductible business expenses.
Below are five deductible expenses you should consider declaring for your small business.
Lunch
It’s one deduction that many small business owners overlook, but you can actually deduct 50 percent of business lunches.
Working lunches and meetings with some catering can be a way to deduct some of your meals from your taxes especially over the course of a year.
Keep it reasonable however, and keep track of those bills.
A Home Office
Some small businesses don’t have their own office space. Instead, they are run out of the owner’s house.
If that is the case for you, you may want to consider remodeling one of your rooms into a home office.
If you do so, you’ll be able to deduct expenses related to your home office. Just make sure you actually use it for an office.
If you play video games in that room, you shouldn’t be claiming it as a deduction.
Travel
If you have to travel to perform your business duties, expenses related to that business travel can too be deducted from your business’s income taxes.
Things like air fare, taxi fare, train tickets, lodging, and more are tax deductible. Also, if you ship items across the country, find your truck you want to use for shipping. Even entertainment costs while traveling for business can be 50 percent deductible.
Phone Calls
Running a small business often means always being on call. If you make a lot of business calls during the day, certainly consider deducting the cost of those calls from your business taxes.
However, you can only deduct the percentage of your time on the phone that you use for business from your taxes.
Software
Running a business means using a lot of productivity software and business apps. None of the best office software comes free.
Some of the most popular applications are certainly expensive. Thankfully, you can deduct the cost of purchasing software or subscribing to software as a service from your business taxes.
Running a business is tough. It takes a lot just to scratch together a profit. Thankfully, you can deduct certain business related expenses from your taxes. This can allow you keep more of that profit for you and your business.
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Category: Business
