Do you think that you pay too much in taxes as a small business owner? If so, then you might be taking the wrong deductions. The Internal Revenue Service (IRS) determines how much you should pay based on your taxable income.
However, there are several business tax deductions that you can take advantage of to reduce your taxable income. If you do, then you’ll have more cash in your business bank account in the end. For example, did you know that you can deduct salaries, usage fees, and office supplies?
See below for several business tax deductions that you might not know about that can help you save money.
1. Home Office Deductions
If you have a dedicated space in your home that you use exclusively for business, you may be able to take a home office deduction. This can be a great deduction if you work from home full-time or even just part-time.
In order to qualify, your home office must be used regularly and exclusively for business. This means that you can’t use it for personal activities like watching TV or working out. The home office deduction can be a great way to save money on your business taxes, so be sure to talk to your accountant about whether or not you qualify.
2. Vehicle Expenses
There are a few business tax deductions you might not know about when it comes to vehicles. If your business requires you to travel frequently or transport equipment or product, you may be able to deduct some of the costs associated with maintaining a vehicle. This could include repairs, gasoline, and depreciation.
If you use your personal vehicle for business purposes, you can also deduct a portion of the operating expenses. Be sure to keep good records and calculate the business use percentage to support your deduction.
3. Business Entertainment
There are a lot of common deductions that businesses can take, but there are also some that are less well-known. For example, entertainment deductions can be a great way to save money on taxes. This includes things like tickets to shows or movies, meals while entertaining clients, and even transportation costs associated with entertaining.
As long as the expenses are directly related to business, they can be deducted. If you want to know more about these business tax deductions, you can consider visiting this link, https://www.drilldownsolution.com/services/cpa-for-dental-services/ for more info.
Save on Business Tax Deductions
If you’re a small business owner, it’s important to be aware of all the tax deductions you’re entitled to. Business taxes can be complex and confusing, but there are also some lesser-known deductions that can save you money.
Be sure to talk to your accountant or tax advisor to make sure you’re taking advantage of all the business tax deductions you’re eligible for. And, always make sure to keep good records throughout the year to make filing your taxes easier come tax time.
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