The Most Forgotten Tax Deductions Business Owners Should Take
Many small business owners often don’t realize exactly what may be taken as a deduction on their entity’s tax return. Here’s a list of deductions that are commonly missed when completing a tax return:
Technology, electronic equipment and supplies
- Items such as laptops, iPads, and cameras are costly. If used for your business in any way they can be deducted from your company’s taxable income. To what extent they may be deducted depends on exactly how much they are used for business versus personal. That in mind, if you’re going to buy a piece of equipment then do so with the intent of using it 100% for your business.
Phone and internet service
- Services for devices such as iPads and smartphones are often able to be deducted for 100% of the expense. Especially more so now that recent tax rulings consider them solely business use if the service, for phones specifically, is composed of at least one “home” phone line; home meaning location of business.
Travel expenses are 100% tax deductible! This differs from meals and entertainment which can only, at most, be deducted 50%. Examples of deductible travel expenses are:
- Meet with a client
- Meet with a vendor
- Attend a conference or training event
- Check on your rental property, if applicable
- Hold your annual board of directors, shareholder, or member meeting
It’s never fun to think about tax items such as deductions throughout the year, but doing so could result in hundreds or thousands of tax dollar savings. Ensure that records of all these expense are well kept and to what extent they are used for business to make it easier and less stressful come tax time.
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Source link: https://www.entrepreneur.com/article/334298