Small businesses are the backbone of any community. As a small business owner, your job is both rewarding and challenging. For many, taxes are some of the more difficult aspects of entrepreneurship. Fortunately, an accountant can help you manage them. Below are several standard deductions for small business owners that you should know. 

What Tax Deductions Should You Ask an Accountant About?

1. Vehicle Costs 

If you drive your vehicle for deliveries, meetings, or jobs, you can deduct costs even if you also use it for personal purposes. You can choose the IRS standard mileage rate, or an accountant can help you deduct more expenses. These may include maintenance, insurance, parking, and tolls. Keep a record of your receipts and mileage to ensure accuracy and prevent audits. 

2. Startup Fees 

Starting a business is costly, but you can deduct up to $5,000 in startup costs and expenses on your taxes. These costs include anything you spend before launching, such as marketing, loan fees, business insurance, supplies, office space rent, and employee training costs. Your business doesn’t need to be fully operational to claim some of these deductions. 

3. Operating Expenses

You can also deduct costs associated with keeping your business running. This includes business travel and meals, office rent and utilities, property repairs, depreciation in assets, and hiring contractors or freelancers. If you have a home office, an accountant can help you deduct the use of your home, including mortgage interest and insurance. However, the home office deduction is only valid if you use the space exclusively for work. 

4. Salaries, Wages & Benefits 

If you have part- or full-time employees, you can deduct their salaries and wages from your taxes. You can also subtract costs such as employee benefits like health and life insurance, bonuses, meals, lodging, and allowances. Sometimes, you can claim the cost of payroll software or professional accountant and bookkeeping services, as well.

If you’re a professional in the St. Louis, MO, metro area, count on STL Tax for reliable help with your business tax return. This team of experienced accountants has been serving the community for more than 15 years, providing QuickBooks® bookkeeping, payroll service, and tax return preparation. Call (314) 645-1614 to speak with a knowledgeable staff member and schedule a consultation. Visit the website to learn more about how they can help you.