10 Business Tax Deductions You May Not Know About

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10 Business Tax Deductions You May Not Know About

May 18, 2022
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As a business owner, it's important to understand the tax deductions that are available to you. Many business owners are unaware of the deductions that are available to them and end up paying more in taxes than they have to. In this blog post, we will discuss ten business tax deductions that you may not know about!

#1: Mileage

If you use your personal vehicle for business purposes, you can deduct the mileage from your taxes. This deduction can add up quickly, especially if you travel a lot for your business.

To deduct mileage, you will need to keep track of the miles you drive for business purposes. You can do this by keeping a log of your travels or by using a GPS tracking app.

Once you have tracked your mileage, you can deduct it from your taxes. The IRS offers a standard mileage deduction, or you can deduct the actual expenses of operating your vehicle.

#2: Entertainment

If you entertain clients or customers for business purposes, you can deduct the cost of the entertainment from your taxes. This deduction is available for business meals, as well as tickets to sporting events or shows.

To take this deduction, you will need to keep track of the cost of the entertainment, as well as who you entertained. You will also need to have a business purpose for the entertainment, such as building client relationships.

#3: Meals

If you have business meals with clients or customers, you can deduct the cost of the meals from your taxes. This deduction is available for both business lunches and dinners.

#4: Travel

If you travel for business purposes, you can deduct the cost of your travel on your taxes. This deduction is available for airfare, hotels, rental cars, and more.

To take this deduction, you will need to keep track of the cost of your travel, as well as the dates and purpose of the trip. You will also need to have receipts for all of your expenses.

#5: Education and Training

If you attend education or training courses for your business, you can deduct the cost of the courses from your taxes. This deduction is available for courses, seminars, conferences, and more.

You will need to keep track of the cost of the education or training, as well as the dates and purpose of the courses. You will also need to have receipts for all of your expenses.

#6: Office Supplies and Equipment

If you purchase office supplies and equipment for your business, you can deduct the cost from your taxes. This deduction is available for items such as computers, printers, and furniture.

#7: Home Office

If you have a dedicated space in your home that is used solely for business purposes, you can deduct a portion of your rent or mortgage from your taxes. This deduction is available for the square footage of your home office.

Keep track of the square footage of your home office, as well as your rent or mortgage payments. You will also need to have a dedicated space in your home that is used solely for business purposes.

#8: Supplies and Equipment

Any supplies or equipment that are necessary for running your business can be deducted from your taxes. This includes things like computers, office furniture, and software licenses.

To take this deduction, you will need to keep track of the cost of the supplies or equipment, as well as when they were purchased. You will also need to have receipts for all of your expenses.

#9: Advertising and Marketing Expenses

Any money that you spend on advertising or marketing your business is tax-deductible. This includes things like online ads, print ads, and even sponsorships!

To take this deduction, you will need to keep track of the cost of the advertising or marketing, as well as when it was purchased. You will also need to have receipts for all of your expenses.

#10: Health Insurance

If you have business insurance, the cost of the premiums is tax-deductible. This includes things like liability insurance, property insurance, and even health insurance for your employees! 

To take this deduction, you will need to keep track of the cost of the premiums, as well as when they were paid. You will also need to have receipts for all of your expenses.

Conclusion:

As you can see, there are a number of business tax deductions that you may not be aware of. By taking advantage of these deductions, you can save yourself a lot of money on your taxes. Be sure to speak with your accountant or tax advisor to make sure that you are taking advantage of all the deductions that are available to you!

This is just a list of some common deductions- for more information specific to your business, please consult with your tax advisor.

Courtesy of NASE.org
https://www.nase.org/about-us/Nase_Blogs/self-made/2022/05/18/10-business-tax-deductions-you-may-not-know-about