If you own a small business, one of the easiest ways to boost your profits is to make sure you are taking all the deductions you are entitled to on your tax return.
It can be a good idea to consult a tax professional, like a CPA, to find out which of these deductions your small business is eligible to receive.
This can include costs related to hiring someone to design a business logo, launching your website, buying ad space in print or online media, running a social media marketing campaign or sponsoring an event.
If you use your car for business activities, such as driving to see a client or going to the store to buy office supplies, the costs may be tax deductible as long as you keep track of the mileage.
If you loaned money to an employee, client, or supplier and it wasn’t paid back or if you made credit sales to customers that were never paid, you may be able to claim the outstanding debt as a business tax deduction.
The snacks and meals you buy for your employees are also typically 50 percent deductible. Food provided at company parties is generally 100 percent deductible.
If the insurance policy is considered ordinary and necessary, you can typically write off 100 percent of your premiums.
If you’ve taken out loans for business purposes, including lines of credit and mortgages on business real estate or if you’ve used business credit cards, the interest you pay on those loans may be 100 percent tax-deductible.
If you hire freelancers or independent contractors to help in your business, you may be able to deduct their fees as a business expense.
If you invest in furthering your knowledge and expertise to give you a leg up in the market, or provide your employees with educational benefits, you may be able to write these costs off as business expenses.
Depreciation is a way of spreading the cost of business equipment or assets over time. It essentially measures how much an asset’s value has been used up or exhausted during the year.
If you give clients and prospects gifts as part of your business, the IRS generally permits you to deduct up to $25 per person per year.