10 Tax Tips for Small Businesses
At tax time, small businesses looks for every deduction they can find. Unfortunately, many business owners overlook some of the deductions that could save them the most money. For example, did you know that you can deduct the cost of business-related travel? Or that you can get a tax break for hiring employees?
Here are ten tax tips for small businesses that can help you save money at tax time:
1. DEDUCT THE COST OF BUSINESS-RELATED TRAVEL
If you travel for business, you can deduct the cost of your airfare, hotel, and other travel expenses. Always be sure to keep receipts and records of your travel expenses so you can claim them on your taxes.
2. DEDUCT THE COST OF BUSINESS-RELATED MEALS AND ENTERTAINMENT
If you entertain clients or business associates, you can deduct 50% of the cost of the meal or entertainment. It’s important to save receipts and documentation of the business purpose of the meeting in order to claim this deduction.
3. DEDUCT THE COST OF OFFICE SUPPLIES AND EQUIPMENT
If you purchase office supplies or equipment for your business, you can deduct the cost of these items on your taxes. This includes items such as computers, printers, furniture, and software.
4. DEDUCT THE COST OF BUSINESS-RELATED EDUCATION AND TRAINING
If you take courses or attend seminars that relate to your business, you can deduct the cost of tuition and other related expenses. This is a great way to invest in your business and get a tax break at the same time!
5. DEDUCT THE COST OF HIRING EMPLOYEES
If you hire employees, you can deduct the cost of advertising for open positions, interviewing candidates, and training new hires. You can also deduct the cost of employee benefits such as health insurance.
6. DEDUCT THE COST OF BUSINESS-RELATED PROFESSIONAL SERVICES
If you hire a professional service provider such as an accountant or lawyer, you can deduct the cost of these services on your taxes. This is a great way to save money on professional fees.
7. DEDUCT THE COST OF RENTING OR LEASING OFFICE SPACE
If you rent or lease office space for your business, you can deduct the cost of rent or lease payments on your taxes. This deduction can save you a significant amount of money if you have a large office space.
8. DEDUCT THE COST OF BUSINESS-RELATED INSURANCE
If you purchase insurance for your business, you can deduct the cost of premiums on your taxes. This includes insurance for property, liability, and workers’ compensation.
9. DEDUCT THE COST OF INTEREST ON BUSINESS LOANS
If you have a loan for your business, you can deduct the interest paid on the loan on your taxes. This can be a significant deduction if you have a large business loan.
10. DEDUCT THE COST OF DONATIONS TO CHARITY
If you make donations to charity, you can deduct the cost of the donation on your taxes. This is a great way to support a worthy cause and get a tax break at the same time.
These are just some of the deductions that small businesses can take advantage of at tax time. Be sure to talk to your accountant or tax advisor to see if you qualify for any other deductions. By taking advantage of all the deductions available to you, you can save a significant amount of money on your taxes.
