A Small Business Owner’s Tax Deductions Checklist
At Corey & Associates, we understand that tax deductions can be quite a challenge for small business owners. Identifying the right deductions can be viewed as a stressful or laborious task, but you can handle it quickly and easily through a little preparation. Moreover, in a small business, finding the unknown deductions is what reduces your taxable income. This could also further lead to you getting an extra paycheck every year.
As expert tax accountants, we’ve created a handy checklist to help you find deductions that you might not normally think of. By following our tax deductions checklist for small business owners, you can save more time and money on your taxes.
1. See how you can deduct your home on your tax return
As a property owner, you can claim a tax deduction on your home. The taxes deducted include taxes paid at closing when buying or selling a house and taxes paid to your state’s tax assessor on the assessed value of the property.
2. Your cable bill could be a tax deduction
This can include small businesses like yours that use cable services as a source of educational instruction or to help attract more clients. As far as the IRS is concerned, it represents an ordinary and necessary expense and may be deductible in some instances. If your company has a minimal need for cable services while conducting daily business, you may be able to get a partial deduction of the cable expense based on how often the service is used.
3. If you pay rent, it could be a tax deduction
If you live in a rented house, you can claim the House Rent Allowance (HRA) to lower your taxes partially or wholly. You just have to submit proof of rent receipts to the IRS. In case of a partial deduction, the balance HRA, which is not tax-exempt, is deducted at the applicable slab rates. Similarly, if you run your business out of your rental home, you may also be eligible for home office deductions.
4. Go on vacations where you are learning so that you can deduct a part of the trips
To deduct your travel for a business-related educational seminar or event, you have to show that obtaining business education is the primary reason behind your trip. Consider how many hours of each day will be spent on educational activities and accordingly deduct the expenses on that part of the trip.
5. Put your Uber expenses on a business credit card
If you have two regular places of work or need to travel around to conduct your business, you can deduct that travel expense from your taxes. You can do that by paying your Uber expenses with your business credit card that is linked to your business account.
6. Pay for your cellphone bill out of a business account
You can qualify for a cellphone deduction from cell phone charges incurred when the mobile phone is being used exclusively for business purposes. Keep careful records, such as an itemized phone bill, so you can prove that your deduction is valid in case of a tax audit.
7. If you pay tolls, put it on a business card
When using your car for business purposes, add the cost of your tolls, parking, and your other car expenses to your business credit card as the IRS considers these to be part of your business expense.
8. Call Corey & Associates to give you an end of year checkup
We have been tax accountants for the past three decades now and have helped several clients with their accounting and tax planning. We enable businesses and individuals like you to save thousands of dollars over the years. In addition to the tips we mentioned above, throughout the course of our business, we’ve been using a thirty top business tax deductions list to help our clients save money. To take a look at this list, please click here. The tips in this list are almost audit-proof and useful to everyone. To learn more about how you can save on your taxes in the USA, text taxman to 26786.
If you have any concerns about filing your taxes or you’re looking for tax accountants in Hialeah, Miami Lakes, FL, reach out to Corey & Associates. We provide you with the best accounting, tax, and consulting services possible by expanding your knowledge and practice of accounting in your business across Florida. We do not want you as a client but as a friend. Clients only come once and never come back. With friends, it’s the opposite. As a result, our tax accountants at Corey & Associates develop relationships so that we can be reliable friends to you.
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