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| Small business owners 👩🏻💻 can maximize profits by taking advantage of tax deductions 🧾. |
| These savings can be invested back into the business for growth. |
| Here are 10 important tax deductions to consider, based on my experience in tax coaching 👩🏻🏫. 1. Home Office Deduction 🏠To qualify for the deduction, the home office must be used exclusively for work purposes and be the primary place of business.2. Business Use Of Your Car 🚗Such as vehicle cost, insurance, registration, gas, repairs, and maintenance. To qualify, you must keep track of personal mileage versus business mileage and take a percentage related to business. 3. Employee Wages And Benefits 👷🏻♀️The taxes paid on employee wages are a business deduction, as are other expenses such as health insurance premiums, retirement plan contributions, and fringe benefits.4. Travel Expenses ✈️Business-related travel expenses such as airfare, lodging, meals, and transportation can be deducted as long as more than half of the domestic travel days are for business purposes. |
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| 5. Office Supplies And Equipment ✏️Such as computers and printers, and also items like plants, artwork, and charging cables. Keep receipts and records of purchases to prove expenses.6. Advertising And Marketing 📢Such as website design, ad costs, promotional items, and social media advertising. This includes costs for photographers, videographers, editing, equipment, and other related expenses.7. Professional Fees 💼Professional fees paid to lawyers, accountants, and other consultants are deductible as business expenses, but they must be directly related to business and not personal expenses.Accountants who are not bringing tax savings ideas to businesses could be lacking continuing education to keep up with changing tax laws. |
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| 8. Rent Or Lease Payments 💰The Augusta Rule allows businesses to pay rent to the owner for the use of their home for business events or meetings for 14 days or less per year. This is a tax-free business expense, but it is important to consult a tax strategist and keep records of payments and related expenses.9. Depreciation 🚛Depreciation is a deduction that allows you to recover the cost of assets used in your business over time. Assets over $2,500 must be depreciated, not expensed.10. Insurance 🔐Such as liability insurance, property insurance, E&O insurance, health insurance, vehicle insurance, worker’s compensation, and other necessary insurance types. |
| Keeping accurate records and following the tax code is crucial to ensure eligibility for deductions. |
| Consulting with a tax professional is recommended. To schedule a consultation click here. |