What Can I Deduct From My Taxes When I Own a Business?

By diamondcpas Business Taxes, Entrepreneurs Comments Off on What Can I Deduct From My Taxes When I Own a Business?

We recently blogged about business deductions but want to provide you with some more information based on the questions we are fielding from clients this year.  New business owners and entrepreneurs may have a great opportunity to deduct very specific expenses.  

Small business owners and entrepreneurs often start out with different goals. Some start businesses that are full-time jobs for the owner while others are a way to make money from a hobby.  It doesn’t matter the reason, the tax deductions for a small business owner can be significant.  When it comes to tax time, clients are often shocked to learn all that they can deduct. So, to inspire you to check your own expenses, here is a list of commonly overlooked tax deductions.

Note: It is important to recognize that your business may not qualify for each one of these deductions. Therefore, it is crucial for you to sit down with a member of our staff to review the particulars of your business and tax situation.

Miles:  This is one of the most overlooked deductions which can add up to thousands in savings each year. The miles you drive for business purposes are deductible.  So, when you attend a networking event, client meeting, or training seminar, you should record the miles.  

Home office:  Many clients come into our Newtown, PA office and ask, “Can I deduct my home office?”  A home office can be a valid deduction but may not work with your long-term financial goals.  We can help you find a solution that is right for you.  

Supplies:  If you purchased a calendar, pens, coffee and other supplies for your office, you may be able to claim those expenses as a deduction.  

Marketing:  These expenses include your website and hosting, Customer Relationship Management System (CRM), business cards, flyers, and any additional advertising you do to promote your business.  

Retirement Savings:  As a small business owner you will be able to save money in a retirement plan.  We can review with you the types of plans available and allowable contribution amounts.  

There are other expenses that may qualify.  These can include your cell phone, depreciation, furniture, insurance, gifts, meals, travel, rent, freelancers, and many other expenses.  Some of the expenses, like the home office mentioned above, may have other tax implications (long-term and short-term).  It is always best to consult with a CPA to go through each of these deductions and see which ones will work for you and your business.  

 

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