A Small Business Tax Deductions Checklist
Often, it's not just about your sales figures, but your ability to save and find the most efficient ways of doing business that can keep your company successful. There are a large number of deductions that small business operators miss out on every tax season because they are either not aware of them or are too lazy to find them, and the savings provided by these deductions can equate to thousands.
Not filing for your rightful deductions, can be highly detrimental. These tax deductions exist to help small business owners succeed by reducing the financial burdens owning a business is commonly associated with. Finding the tax deductions that are available to you is more than about looking for ways to avoid capital gains tax. To help you find the deductions that may be available to you, review the following deductions checklist:
Working Space
If you have an area of your home that you consistently work from and only use this space for business purposes, you can deduct it from your taxes. To do so, calculate the square footage of this space and then deduct all of your energy costs in utilities and hardware that it takes for you to operate. You can write these things off next April.
Advertising and Promotional Expenses
This is one of the basic costs of doing business and writing off promotions is one option that's available to anyone that operates a business.
Banking Fees
This is a write-off that can include anything from check charges, monthly banking fees, or transactions and overdraft protection fees. This is just another part of doing business.
Charity and Contributions
If you give any portion of your services or money to charities or other organizations, then you can write all of these donations off on your taxes. This is a big part of the process and it can mean thousands in savings that you're missing out on.
Research Fees
If you do any amount of reading, traveling, or purchasing to expand your knowledge about conducting business, you can deduct all of those educational expenses from your taxes. This includes: seminars, classes, educational material, or travel costs. These are considered investments towards doing business.
Equipment and Infrastructure Costs
To claim this deduction you will need to calculate the costs of equipment, furniture, company vehicles, and other costs of furnishing your venture.
If you're not sure what's included in your deductions list, check with the IRS' web site to see the guidelines for what's considered deductible and non-deductible. Even though it may be listed, you should still speak with a tax attorney or professional during the preparation of your taxes. This will ensure that all of your paperwork is in order and you don't get flagged simply because you forgot to check a box.
