Small business owners are constantly looking for ways to cut costs to maintain financial health. Fortunately, tax deductions can reduce what your company owes the IRS, and there are many deductions that you can take advantage of. Here are a few deductions to keep in mind when working on tax return preparation with your accountant.

Which Small Business Tax Deductions Can I Claim?

1. Travel Expenses

While local commutes aren’t deductible, you can claim the travel costs whenever you or your staff leave town for business. This includes fees for airfare, lodging, and fuel. You can also deduct entertainment costs if the funds were used on clients and associates.

2. Rent

Renting tends to be cheaper than buying. Many business owners rent physical space in a building for their store or office, as well as equipment to execute company operations. You can claim the renting fees and deduct these costs from your business’s taxes.

3. Home Office

If you work from a dedicated office space in your house, you have two options. You can deduct $5 for every square foot of office space in your home up to 300 feet or calculate home expenses and multiply them by whatever percentage of your house is used for business purposes.

4. Fees for Professional Services

Any professional service related to your company is typically deductible. For example, you can deduct the costs of an attorney helping you register as a legal business entity or creating a partnership agreement. Accounting fees are also eligible for deduction. This includes help with business tax return preparation, as well as assistance with setting up an accounting system for your business.

If you’re a business owner and want help with your tax return preparation, contact Wilfred E. Bucher, CPA, in Honolulu, HI. This experienced accountant and his team will ensure your small business takes advantage of every possible tax deduction. Once you receive your return, they’ll advise you on the best way the funds can support your company’s future. Get more information about their tax planning services online, or call (808) 528-4146 to schedule an appointment.