Did you know that if you started your business last year, but the doors to your businesses technically opened this year, you can send a write off from your expenses last year as a deduction? Well, if you didn’t know that you could do this, let me tell you that you can! I bet you didn’t know that, but now you do! Thanks to our sharped brained tax accountants servicing you and your small business tax solutions.
We’re here for you every step of the way.
Sometimes, the Small Things in Life Can Be Deducted
Not only can your expenses from last year be deducted, but so can petty things can be deducted too. Such as your magazine subscriptions, educational classes, and petty cash. These type of purchases can probably be deducted with your small business tax deduction. Make sure you talk to a relevant and knowledgeable tax accountant about what can and what cannot be deducted.
Other deductions allowed for your small business.
Office furniture acquisition can become tax deductible. You have two options for this matter, you can pick to either deduct 100% of the cost in the year of the purchase, or the deduction can be done proportionately, over 7 years in the expense.
Home Office Space
Little did you know, but your Home Office can be deducted as a tax exempt from your small business. This also includes your own home office. In order to accurately analyze the size of your homework space, that is plausible for tax deduction, you’ll have to measure the work area which you use for home-related business work. Take the size of your home office space, and then divide it by the square foot of your home. That percentage is the fraction you can claim as a home-related-business expense.
Make sure you keep the receipt to your office supplies. These products can be tax deductible.
Equipment Is Treated like Furniture
Having useful equipment to better your company’s work progression, such as computers, scanners, copiers, printers can all be tax deductible. Just like your furniture, you can receive a 100% deductible the first year of purchase, or you can obtain a depreciation of the products over 5 years.
Off-the-shelf software can now be fully expensed in the year purchased. Previously, software could only be depreciated over 3 years. A helpful tax break for your company’s business expense.
Travel Deductions for Small Business Owners Doing Business
As a small business owner, you travel expenses can be tax deductible. This includes how you transport yourself via car, plane, train, as well as the cost for living on the road, such as hotels, rental cars, cleaners. The only product that is not fully tax deductible is your food. Only 50% of your food expense can be deducted during your travels as a small business owner. Other meals that are tax deductible are the ones which you bring along a client for business purposes. These meals can be deducted by 50% as well. But your job meals at home are not tax deductible.
Gifts given to clients or employees will be 100% tax deductible. So are other expenses to entertain your employees, they can be 50% tax deductible as well.
You can deduct the tax from the business calls you make from home due to business reasons. When you receive your phone bill, tally up the calls you have made for business purposes. Those calls after added up can be 100% deducted.
Regular fees and charges don’t count if you have a second phone line installed in your home for business purposes. But the fees and charges you obtain from calls in your regular phone line will count.
Same with your cell phones. If you use your cell phone 30% for business purposes. That 30% can be deducted from your phone bill.
Make sure you keep a record of the times you used your phone for business purposes.
Keep Your Receipts
If you end up being audit by the IRS, having receipts with you to prove your tax deductions will allow the audit to go by smoothly. Also, contact a professional tax accountant, make sure they are there to help assist you with your tax preparations.