The Latest Small Business Tax Deductions That You Can Write Off Today
Do you get a headache or a panic attack every time you have to file your small business taxes? Do you wish there was a way you could reduce your taxes in an ethical way?
The good news is you can. In fact, you might not even be aware of all the small business tax deductions you can write off.
And while it’s important that we all contribute taxes, it’s going to dramatically help out your budget (and business growth) if you take steps to write off everything you can.
Read on for the latest tax deductions that can help you on your road to entrepreneurial success!
Marketing and Advertising
This is one of the first places you should look for deductions because the list is so long.
A few examples of marketing and advertising expenses you can deduct include:
- Business logo design
- Printing business cards and brochures
- Website creation and design
- Social media marketing campaigns
- Ad space online and in print
Keep in mind that you can’t deduct any expenses that you use to promote an event. The same goes with sponsoring political campaigns in your company’s name.
Business Gifts and Meals
If you’ve just booked your office Christmas party, then good news—you can deduct 100% of the cost of food.
For business meals other than office social events, you can deduct 50% of your food and drink costs.
These events must “qualify,” which means that they should be a necessary part of your type of business. An example of this is meeting with a potential client to talk about your services.
If you only drive your vehicle for business purposes, you can deduct the entire cost of operating the car.
An example would be if you are the small business owner of a cleaning company and only drive the car only between clients’ houses.
If you use your vehicle for both personal and business purposes, then you can only deduct the costs related to your business. This would include gas costs when driving to a client’s office.
In this scenario, you’ll also have to follow one of the two methods set out by the IRS.
Employees and Contractors
One of the perks of business ownership is that you can write off employee salaries, bonuses, commissions, and fringe benefits.
And if you hire a freelancer or contractor to work for you, then you can also deduct these expenses. Just make sure to issue a 1099-MISC form if the services exceed $600 in one year.
Be sure to check if you are eligible for the Employee Retention Credit (check out https://erctoday.com/helpful-faqs/ for more information).
Make These Small Business Tax Deductions Today
By taking advantage of these small business tax deductions, you can ease the burden on your budget and have more money to reinvest in your company.
Just be sure to keep track of all your expenses and save your receipts. This will ensure you have all your documentation come tax time.
And for more finance tips, be sure to check out more blog posts from our business category!