With April just around the corner, many small business owners are immersed in the tax preparation process. To save your company money, identifying deductions is key. Here are a few that many business owners don’t know about.  

Deductions That Can Reduce Your Business’s Tax Burden

1. Business Meals

Business lunches and dinners can help you gain new clients. While recent changes to the tax code have eliminated deductions related to entertainment, amusement, or recreation, business meals are still eligible. You’re allowed to deduct 50% of the meal and beverage costs, provided that you or an employee were present at the meal, along with associates, clients, or partners.

2. Professional Development

In order for your business to succeed, you need to build your skills via courses and conferences—many of which cost money. To be eligible for this write-off, your professional development activities must be work-related, and it won’t work if you’re studying to join a new field. Some examples that you can write off during tax preparation include books, online courses, and other learning tools designed to improve your skills.

3. Gas Mileage

While your commute to and from work isn’t deductible, you can deduct gas mileage when traveling for business. If you’re self-employed, all miles traveled for business can be deducted. You can deduct 58 cents for every mile you drove. You can only include miles that were traveled for your company; if you take a personal detour while driving, these miles should not be included.

If you need help with the above deductions or general tax preparation, Bergamo Tax & Financial Services is here to help. As a highly respected firm serving New Haven, Litchfield, and Hartford counties, CT, they’ll work with you to understand your exact tax situation. They can help you reduce your tax burden by identifying applicable deductions. Other services include payroll help, audit reviews, succession planning, and individual tax preparation. Visit the website to learn more about their services. Call (860) 274-1655 to schedule a consultation.