Starting and operating a successful business takes a lot of time, effort, and most importantly, money. Most small business owners use their own money to get their business up and running. To help ease some of the pain, the IRS allows for certain items to be used as tax deductions for business expenses:
Home office: A portion of personal expenses of a home are deductible, provided the home is used regularly and exclusively as a place of business. Available deductions include direct costs such as painting or repairing a home office, and indirect costs, such as a percentage of rent or real estate taxes.
Car and truck expenses: The cost of operating your vehicle for business purposes can be deducted if records are acquired indicating it was used as such. Another option business owners have is to use the IRS standard of mileage, which was 57.5 cents per mile in 2015 instead of itemizing deductions.
Insurance: Malpractice coverage, business continuation insurance and the cost of your business owner’s policy are fully deductible.
Supplies: Items that are used for your business are completely deductible.
Utilities: Electricity for your facility is fully deductible.
Qualified Retirement Plans: Contributions to qualified retirement plans for self-employed individuals are personal deductions that are claimed on Form 1040. On the other hand, employee benefit programs such as contributions to employee qualified retirement plan accounts are deductible.
Meals and entertainment: These costs (such as a business lunch or dinner) are 50% deductible.
These are just a few of the common tax write-offs available to small business owners. Knowing the tax write-offs available can be vital to the success of a business.
Read the rest of this section an in my newly released new book Readi –Set Go: A Simple Guide to Establishing a Successful Small Business.
Pick up a copy HERE!