If you’re a small business owner, the prospect of paying your hard-earned money to the government at tax time can be stressful. One of the best ways to reduce your bill is to make sure you claim all of the deductions available for your company. The business accounting team at A-Z Business Solutions, a bookkeeping firm in O'Fallon, St. Charles, and Chesterfield, MO, as well as Tampa, Seffner, and Clearwater, FL, discusses some small business tax write-offs to use for your company.
Tax Deductions That Are Appropriate for Small Businesses
1. Office Furniture & Equipment
You might already know that your work computer and other equipment are tax deductible, but you can also claim a deduction for your desk, chair, and coffee table in your office. Only deduct furniture and equipment that is necessary and used for your company, however. Ask your business accounting team if other items in your home office qualify as deductible.
2. Vehicle Expenses
If you drive for your business, you can deduct mileage, tolls, and parking costs. You can either deduct your auto-related expenses or calculate your deduction based on the miles you drove, including tolls and parking. Keep thorough documentation of this information, so it is available at tax time.
3. Traveling Expenses
You can also deduct the cost of traveling by airplane, bus, or train, including lodging and meal expenses. Save all your receipts showing the date and amount spent. A business accounting professional can help you with the paperwork.
4. Cost of Insurance
The entire cost of your medical, dental, and long-term care insurance premiums might be deductible. You can take the deduction for these insurance expenses for yourself, your spouse, and dependents. However, if you or your spouse were able to enroll in health insurance provided by another employer, you can’t deduct the costs.
5. Software Programs
The costs of purchasing necessary computer software for your business can also be deducted. Make sure you buy and use the software within the same year to qualify. If you pay a monthly fee to use software, this cost can be written off as well.
Owning a small business can be stressful, especially when it comes to preparing your taxes. The bookkeeping team at A-Z Business Solutions provides professional tax preparation and accounting services to help your company financially succeed. Give them a call at (855) 553-2665 to discuss your needs with a professional, or visit them online to learn more about their business accounting services.