What Deductions Can I Claim for my Small Business
Owning a business can be a great experience, but will also come with its fair share of challenges. To be successful as a business owner, you will need to find a way to cut back on your expenses. One area where you may be able to cut back on costs is through a reduction in taxes. There are five important tax deductions that business owners may be overlooking.
Start Up Expenses
When you are starting a business, there are a lot of expenses that you will incur that can include buying equipment, marketing the organization, and filing legal documents. When first starting a business, many owners do not think about how they need to keep track of these expenses. If you are able to hold on to relevant receipts, you could deduct these expenses at the end of the year.
If you own a car and use it for your business, you could deduct part or all of the costs associated with it. The team at OC Tax Relief will help you to identify how much of your related auto expenses should be deducted from your tax bill. This can include depreciation, auto payments, gas, and insurance.
If you operate your business out of a home office, you may be able to deduct some of your expenses associated with it. This can include deducting any furniture or equipment that is used for your home office. The professionals at OC Tax Relief could also help to determine whether you would qualify to deduct a portion of your rent or mortgage expenses.
Meals and Entertainment
Building business is important for any business. While this can seem expensive to do at times, you can almost always save money on taxes. If you take clients to a dinner, sports event, or entertain them in another manner, the money that you spend could be deducted off of your taxes at the end of the year.
Once you are done having your taxes done, you should also consider the money that it cost for you to prepare and file your expenses. When you are preparing your taxes, you should remember all of the tax expenses that you had in the prior year. Some of the items that can be deducted can include your software expense, tax consultation services, and any other expenses that were necessary to prepare and file your financial statements and taxes.