Starting a small business can involve a substantial financial investment, but savvy small business owners can recoup some of their expenses if they know how to take advantage of certain tax deductions. Many small businesses qualify for a variety of tax deductions, and business owners might be unaware of some of the deductions that can amount to big cost savings.
Office Equipment and Supplies
A small business owner who invests money into buying computers, printers, copiers and other office equipment to run their business can apply these expenses toward tax deductions. Even inexpensive office supplies, such as paper, pens and staples, can be deducted as long as receipts are submitted to the IRS to prove the total cost of these expenses.
Small business owners who use any vehicles for business purposes can often write off the related expenses on their taxes. Deductible expenses often include gas, mileage and any maintenance work that might be needed so that the vehicle can continue to be driven to conduct business.
If a business insurance policy is purchased, the insurance payments will likely qualify for tax deductions. Any health insurance that has been purchased to cover employee medical expenses can also usually be written off on small business taxes. Even employee life insurance and workers’ compensation costs can often be claimed as tax deductions.
Small business owners who invest money into promoting their brands can claim tax deductions for marketing expenses. Related expenses may include business card printing, signage creation and logo design. Small businesses can even apply for tax deductions for business website design and social media campaigns.
Certain contributions that are made to a charitable cause on behalf of a small business can usually be counted as tax deductions. To qualify for these deductions, small businesses must keep a record of the money or goods that were donated to submit to the IRS. The time that’s required to organize charity drives or fulfill other acts of charity can’t be deducted from business taxes.
Many small business owners will likely be amazed when they realize all the money that they can save when they apply for different tax deductions. Qualifying for these deductions is often easy if the correct documentation is submitted with the tax forms.