As a small business owner, you understand how tax deductions can greatly reduce your tax burden. That’s why the CPAs at Wilson, Rea, Beckel & Associates CPAs LLC in Pagosa Springs, CO, encourage clients to look into which tax deductions apply to them and their businesses. Proper tax planning can help you cut costs throughout the year, while also ensuring you remain in compliance with all applicable laws and regulations.

3 Types of Small Business Deductions Courtesy of a Colorado CPA

1. Business Software & Subscriptions

The total value of things like business software, such as word processing or database building programs, can be deducted from your yearly taxes, provided that you’re deducting from the filing year in which the program was purchased. The same can be said for magazine subscriptions to industry publications or other business-related subscriptions that assist you in doing business.

2. Home Office

One key factor in using a home office as a deduction is that the area must only be used for work. That means if your home office is used in a common area (such as a guest bedroom), it’s more likely you’ll face questions from the IRS. To deduct your home office, take a measurement of where you work and divide it by the square footage of your entire home. The resulting number can then be used to determine the percentage of total home costs (things like rent or mortgage, for instance) which can be deducted from your taxes.

3. Travel, Meals & Entertainment

For business travelers, the full cost of accommodations and transportations are tax deductible, so make use of those savings. When it comes to meals and other types of entertainment for clients and associates, only half the cost can be deducted. However, only entertainment and meals while traveling for the purpose of business are allowed, unless you’re taking a client out at home for the express purpose of discussing business matters.

With 16 years of experience, the team at Wilson, Rea, Beckel & Associates CPAs LLC are equipped to provide small business owners in Pagosa Springs with the information they need. Schedule your appointment with a skilled CPA by calling (970) 731-1040. You can also see the complete listing of financial services by visiting the website.