When you have a small business, your efforts are often spread thin not only growing your customer base, but also taking care to spend wisely. It can be helpful to understand the deductions that are common on small business tax returns so that you can be sure you are keeping track of items that will equate to a lower income tax responsibility. Here are the most common deductions you should know about:
- Marketing– Most small business tax returns include such items as direct mail advertising expenses, yellow page advertising, and other print marketing efforts. What you may not have thought about is the power of social media. You can deduct the cost for social media scheduling software or the costs related to setting up and managing a website and social media exposure.
- Promotional Expenses– The more you are seen, the more people will remember you, so get in front of your potential customers with trade shows, networking organizations, and so forth. You can deduct venue rentals, speakers, catering, table and chair rentals, and much more.
- Business Meals– While the new laws no longer allow deductions for entertainment, you can still deduct meals while traveling for business purposes.
- Business Vehicles– There are two ways to deduct vehicle expenses – actual cost for gas, repairs, insurance, and maintenance, or by tracking business mileage and using a set mileage rate.
- Home Office– If you do the majority of work at home, develop a space that is used exclusively for your business to qualify for the home office deduction.
- Professional Fees– The best way to be successful is with a team of professionals advising you. You can deduct the fees of accountants, contractors, lawyers, web designers, and others.
This is just a small representation of common deductions on small business tax returns. There are far more, not to mention tax credits. With changing tax laws, it is important to work with an accountant who prepares small business tax returns so you can take advantage of every tax deduction and credit possible. At Proctor & Assocs., we are here all year to provide guidance and advice, so when it comes time for filing your taxes, you will be in good shape. Call today to schedule a consultation to learn more.