If you’re like many small business owners, your thoughts are already turning towards preparing for tax season.
And an important part of that preparation should be looking for ways to potentially save your business a lot of money: namely deductions!
Need a refresher on what’s deductible? Then watching the video above on the top 10 tax deductions for small businesses should help.
These Deductions Can Really Help Your Bottom Line
When you deliver your files, receipts and spreadsheets this year, make sure to schedule some time with your accountant to discuss tax deductions that could save your business vitally important revenue. You may be aware of many of them already, but here’s a refresher course just in case.
For example, you probably know that while your salary is a non-deductible draw in many cases, you can deduct the salaries and wages you pay your employees. And speaking of wages, you can also deduct the fees you pay to professional service providers such as accountants, lawyers and perhaps even your tax preparer. Yay!
Many ongoing business fees are actually eligible for deductions. Those include your insurance payments, rent on business facilities, items used in a business (e.g., cleaning supplies for a cleaning service), and the electrical utilities that keep your facilities running.
Some of the available deductions may surprise you. One example is your home office. Did you know if you use your home as a principal place of business you can claim some of your personal expenses as deductions? That includes mortgage interest, insurance, utilities, repairs and depreciation. This is the case whether you use your home as a place to meet or deal with clients or customers or for some other business activity. And, of course, if your company owns property that’s used exclusively for business purposes, you can deduct many of the costs — including mortgage interest.
Finally, don’t forget to deduct your ordinary advertising costs. This is an important one t keep in mind.
So this tax season, don’t forget to ask your accountant about these top 10 tax deductions for small businesses and more. The results could really change your bottom line.
And for more, be sure to check out the full list of top 20 tax deductions for small business.
Tax Deductions Photo via Shutterstock
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Really nice explanation for each. I guess I am the type who can learn financials through video. Thank you.
Thank you for sharing these useful tips! There are things that I did not know!