30 Things You Can Deduct From Your Small Business Taxes
When it comes to cutting costs for a small business, annual taxes are a great place to start. There are a wide range of expenses that can be lawfully deducted from your taxes, from utility bills to paying for a new company truck. Check out the list of 30 items below to find some of the common deductions that entrepreneurs and small businesses make to reduce their tax bill each year.
30 Common Deductions for Small Businesses
1. Housekeeping, cleaning and sanitation
2. Radio, TV and paper advertising
3. Company cars and other vehicles
4. Membership dues for commercial associations
5. Uncollected payments from customers
6. Fees from financial institutions
7. Travel for business purposes
8. Structural repair and maintenance
9. Hosting for meetings of employees, managers or board members
10. Donations to charities
11. Computers, printers and peripherals
12. Appliance installation and repair
13. Shows and conventions
14. Depreciation of property value
15. Employee education and improvement
16. Hosted events and entertainment for customers
17. Fees related to franchise ownership
18. Certain types of group insurance plans
19. Qualifying home office expenses, including utilities and equipment
20. Payments made for legal consultation or services
21. Financial loss from theft or vandalism
22. Interest generated on business property mortgages
23. Costs related to moving to a new location
24. Payrolls taxes, like social security and unemployment
25. Employee pension plans
26. Research and development for new products or services
27. Earnings from royalties
28. Payments made to subcontractors
29. Leasing of storage space for commercial property
30. Certain types of discounts given to customers
It’s important to note that there are some stringent restrictions that determine what does and does not qualify as a business expense. Business owners must take care to keep their personal finances and accounting separate from their company to avoid confusion or mistakes. Talk to a licensed professional if you are unsure if one of your expenses can be deducted from your taxes.