As a small business owner, lowering your taxable income is always a big goal. There are often tax deductions that are overlooked because there are many small business owners that are inexperienced. Knowing what deductions you are eligible for makes a big difference when it comes to filing your taxes. Mark Dicus & Company is here to share some tax deductions that might be available to small business owners that they should be taking advantage of.
Tax Deductions for Small Businesses
Most people have heard the saying, “to make money, you need to spend money.” That is certainly true for small businesses. There are many different expenses that are required to keep a business running. However, there are many spending categories that business owners could be eligible to claim as a deduction that could end up saving thousands. Here are some deductions that you might want to remember during tax season:
– Utilities: The money you spend on utilities as a small business are tax deductible. This includes electricity, water, and phone. If you are using a home landline, it is not something that you can deduct though. Other phone lines you have for your business are. If you have a small business out of your house, you may only be able to deduction a portion of your utility bill.
– Marketing Costs: Another important expense for small businesses is marketing. This might include things like business cards, website design, online or TV advertising, business signs and flyers and more. These expenses are also tax deductible.
– Insurance Expenses: There are several insurance policies that small business owners might have. These are tax deductible. Some common policies include health insurance, property insurance, liability coverage insurance, auto insurance, and many others. Don’t forget to deduct these on your taxes.
– Business Property or Home Office: If you use a portion of your home solely for your business, you can deduct a portion of your mortgage. If you have a separate property for your business, that is a tax deduction to take advantage of.
– Transportation Costs: Many small businesses have a vehicle that is used for business purposes. The costs accrued when it comes to transportation for your business are deductible. This is done either by deducting actual expenses or using a standard mileage rate.
– Education: If you need education to operate your business the higher education and professional training you need could be tax deductible.
– Software: If there are software subscriptions that are necessary to help you get your work done, it is something that is also tax deductible.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
It is difficult to list all of the deductions that are available to small businesses. The best way to make sure you’re deducting everything that you’re eligible for is to work with the professionals at Mark Dicus & Company. We will help you lower your taxable income. Call us today!