Tax Day is coming up quickly, meaning that you must get your finances in order. You might forget to take some small business tax deductions if you do not.
These tax write-offs could wind up saving you plenty of money if you use them. Even though some items are tax deductible, including employee costs, utilities, and office rent, others might not be evident when filing taxes. Apart from hiring an accountant, it pays to research on your own.
Are you unsure about which business expenses are eligible for tax deductions? Here is a list of the best small business tax deductions that you claim on your tax return.
1. Furniture This past year, did you purchase furniture? It’s tax deductible, in that case, and you may claim desks your seats, and sofas as business expenses that are little. You can write the amount off, or use the depreciation approach. Depreciation might be favorable if you expect your tax bracket to grow later on while you’ve got the choice of deducting the entire cost in the year in which you place the items in support.2. Home Office Costs – If your office, in your home, is your primary place of business, or it’s where you meet with customers and clients, you may qualify for the home office deduction. This deduction lets you deduct a portion of your mortgage or rent, utilities and other home costs as a business expense. There are two methods for determining the amount of the deduction. One is based on a percentage of your home you use for business. The simpler method is based on the square footage of your office space.
3. Travel Costs Chances are, if you are traveling for work, you can take deductions. This includes train and airplane tickets, luggage fees, hotels, Wi-Fi accessibility, business use of your vehicle, etc.. Just 50 percent is allowable if you eat out while traveling.
4. Interest When it is time for tax filing if you have taken out loans to your business, or you’ve got a credit card for business expenses, you can deduct the interest. At least you can maintain them although those interest charges can be a hassle.
5. Consulting Fees Can help you spend money consulting with social networking supervisor, accountant, marketer, an attorney, or
6. Employee Health Care If you’re a small employer with fewer than 25 full-time employees that pay an average wage of less than $50K annually and pays at least half of your employees’ health insurance premiums, then your company is eligible for a tax credit under the Affordable Care Act. Provided that the medical care plans were bought through the Small Business Health Options Program (SHOP), companies can get up to a 50 percent tax credit for those premiums.
7. Equipment and Software You can write it off this year if you purchased equipment or applications. Under Section 179, you can claim up to $500,000 in materials. There is a 50 percent bonus depreciation, meaning that you could claim up to 50 percent of items. In 2018, the bonus goes to 40 percent, and it is going to be 30 percent. 8. Charitable Contributions Can you make charitable contributions to a qualifying 501(c)(3) organization this
8. Charitable Contributions Can you make charitable contributions to a qualifying 501(c)(3) organization this year either in the kind of a financial gift or bodily contribution? These charitable contributions are tax-deductible for those who itemize on Schedule A. make sure to keep all documentation in the qualified charitable acknowledging the amount and date of your participation.
9. Business Cell Phone Use You are working round the clock when you are a small business owner. This means that you do business on your mobile phone. Look at your phone bill and work out how much of your time has been spent this year, making company calls. 12 months if your bill was $ 100 a month and 50 percent of your telephone use was for business calls, then you can claim $ 50 x.
10. Lunch Meetings These expenses can be deducted from your taxes, in case you have business meetings with customers or employees during a meal. You’re permitted to deduct 50 percent of your food and beverage costs.
Tax Day will be here before you know it. By using some of the tax suggestions above, and obtaining your tax records now, you can maximize your business deductions.
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