When you own a business, you naturally want to keep costs as manageable as possible. Reducing your obligations to the IRS is one way to do this without cutting any expenses. When it comes to tax preparation, deductions can save you money on business-related costs. Learn more about some expenses that are eligible to start saving today.

What Tax Deductions Are Available for Small Business Owners?

1. Home Office Costs

A lot of small business owners use a portion of their home as a base of operations. If you have a dedicated area of your home where you perform business tasks, you may be able to write off costs related to that area. Start by determining the square footage of the space you work out of, and then divide it by the square footage of your home. The resulting percentage is what you’re allowed to deduct from your utility bills. 

2. Business Supplies

From reams of paper to plastic utensils, almost all materials needed to keep your business going can be deducted from your yearly taxes. Eligible supplies depend on the type of business you run and the sort of services or products you provide. However, if the materials were used during the year they were purchased, they may be eligible for write-offs. 

3. Independent Contractors

Some businesses use independent contractors and freelancers rather than full-time staff. These workers are treated differently when it comes to tax preparation. Freelance labor can offer tax savings depending on the circumstances. Just make sure you’re classifying workers correctly to claim deductions and prevent penalties from the IRS.

If you’re a small business owner in Silver Spring, MD, looking for tax help, ZP Tax is here to answer your questions and steer you in the right direction. They provide assistance to both businesses and individuals by offering payroll, bookkeeping, and tax preparation services. Call (301) 587-4829 to schedule a consultation with a skilled accountant, or visit their website for more information about their tax preparation services.