Cutting costs is part of running any successful small business, and taxes are likely one of your biggest expenses. Fortunately, even home-based businesses can enjoy the same deductions as Fortune 500 companies, leaving you more money to put back into your products, supplies, and hiring expenses. When you’re preparing your business tax returns this season, don’t forget to write off the following expenses.

3 Tax Deductions for Small Business Owners

1. Contractor Costs

Even if you have a few employees, you might rely on independent contractors to handle some specialized tasks. While these workers aren’t technically employees, you can still deduct their fees, which could cut your tax bill by hundreds or thousands of dollars. If you paid any single contractor more than $600, be sure to send them a 1099 before January 31^st.

2. Vehicle Expenses

Whether you use your own car for work or have a vehicle solely dedicated to your business, the tax code allows you to deduct maintenance, repairs, and the cost of fuel. Remember to keep detailed records of all gas purchases and oil changes, unless you decide to take the standard mileage rate of 54.5 cents for every mile of business travel. A detailed mileage log is required regardless of whether you use the standard mileage rate or actual expenses.

3. Home Office

If you have an area of your home dedicated exclusively to running your business, like an office or space used to store inventory, you may be able to deduct a portion of your mortgage interest, utilities, and other expenses. Consult a business tax return professional first prior to claiming this deduction. There are several repercussions this deduction can have if the property is ever sold.

With over 30 years of experience and a detailed knowledge of the ever-changing tax code, The Staff at Donna J. Troutman, CPA, P.C. take the stress out of filing business tax returns for entrepreneurs throughout Lewisburg, PA. They pride themselves on giving every client the individualized attention they deserve, ensuring you get every deduction you’re entitled to. Visit their website now for tax updates, or call (570) 523-7337 to make your first appointment.