You are probably not even aware of this, but it is likely that you are paying higher taxes than you really need to. Small business owners have access to a large number of possible tax deductions, something which can potentially save you up to thousands of dollars a year!
To use available deductions to your best advantage, follow these simple steps:
1) Keep detailed records of your expenses.
2) Think about your personal expenses. Do you also have business purposes for some of them? If yes, they might become legitimate deductions.
3) Examine all business expenses with your CPA to see which deductions are valid.
Some possible tax deductions include:
– Various fees: management fees, accounting fees, banking fees, legal fees, license fees, investment advice and fees
– Travel and entertainment related expenses: e.g. business travel, dining during business travel, conventions and trade shows, entertainment for customers and clients
– Maintenance and repairs: e.g. equipment, equipment repairs, office supplies and expenses, building repairs and maintenance
– Different types of generosity: e.g. gifts for customers (limit of $25 per each), prizes for contests, discounts to customers, charitable deductions made for a business purpose
– Online presence: software and online services, website design, Internet hosting and services, computers and tech supplies
– Employees’ related deductions: education and training for employees (new), workers’ compensation insurance, payroll taxes, employee wages, family members’ wages
– …and many, many more!
To learn how to correctly apply for these possible deductions, we strictly advise that you hire or consult a professional. Each tax deduction has its own special rules, and you will want to be sure that all your tax write-offs are legitimate and covered with necessary documentation.