Small Business Tax Deductions your Business May Qualify For
Tax Deductions for Small Businesses
When it comes to preparing your small business taxes, many business owners miss out on key tax deduction options that could save their business money in the long run. From Home office deductions to travel percentages, here are some key deductions that your small business qualifies for.
Home Office and Personal Deductions
Small businesses are often run out of the homes of their founders when they get their start. Any space in your home that is dedicated to your business as a workspace can be claimed on your business tax forms. A home office can be a partial room or area that you use for business purposes. The best way to figure out how much of your home costs can be written off as a business expense is to calculate how much of your home space is dedicated to your business, then use that percentage on the costs of your home. If you use your home phone as a business phone, or have a separate line extension, that can be written off for your business as well. If you use a personal cell phone for business purposes, calculating how much of the time you spend using your phone is work related can be applied to your business tax forms for deductions.
Software purchased for the use of the business can also be deducted fully in the year they are purchased, whether that is a new computer for your home office or a photo editing program for your website design.
While your Social Security fees are doubled as a small business owner, you can deduct half of these contributions from your business taxes as well.
Supply and Travel Deductions
Office supplies, furniture, and magazine subscriptions can also be written off as a deductible business expense, either in the year they are purchased in the case of office supplies and subscriptions, or over a seven year time period, in the case of furniture, that can fall under depreciation. Other office equipment, such as printers, can also be deducted.
Travel expenses, such as travel mileage, lodging, and meals, can all be written off to some extent, but it is important to look into the IRS guidelines for claiming them as deductions, as you cannot deduct them all in full from your expenses.
For more guidelines on available tax deductions for small businesses, or to find out how to file your small business taxes with your personal taxes, check out Revap Group Capital’s other articles on the ins and outs of small business ownership.