With income tax season approaching, it’s time to make sure you’re up to date with tax deductions permitted by the IRS and those potentially putting your business in hot water.
So before you fire up that tax filing software or go to meet with your tax adviser, be sure to read the freshly updated tax information below.
2018 Small Business Tax Deductions
While some things are the same, others have either changed or are about to, thanks to new legislation. We’ve teamed up with Small Business Trends tax columnist Barbara Weltman to provide you with the latest.
There are some perfectly acceptable tax deductions you can still claim for your small business including:
- Salaries and wages
- Costs for contract labor
- Rent on your business property
And others may be expenses but cannot be claimed as deductions without raising the ire of tax examiners:
- Clothing for work
- Travel to and from the office
- Gifts to customers, business associates and vendors
- Fines and penalties
What’s more, changes in the newly passed Tax Cuts and Jobs Act mean changes in allowable deductions come the 2018 tax year. But They’re probably things you should know about now for your planning throughout the year.
Will you still be able to deduct reimbursements for employees’ commuting costs, reimbursements for employee relocation costs or entertainment costs — like taking a client to a theatrical or sporting event? Don’t miss these updated articles to find out!
Barbara is an author, attorney and tax expert who serves as a professional advocate for small businesses. She publishes a monthly newsletter, “Big Ideas for Small Business” and is writer of 25 books, including the popular “J.K. Lasser’s Small Business Taxes” and “J.K. Lasser’s 1001 Deductions & Tax Breaks.”
Read her updated versions of the articles Top 20 Tax Deductions for Small Business and Perfectly Legitimate Business Expenses You Can’t Deduct here at Small Business Trends.
Photo via Shutterstock