Small businesses may not be taking advantage of all the tax deductions available to them explains Aron Govil.
Here are 24 tax deductions your small business may be missing out on:
1. The home office deduction:
If you use a portion of your home exclusively for business purposes, you can also deduct that amount from your taxable income.
2. The self-employment tax deduction:
If you’re self-employed, you can deduct half of your self-employment taxes from your taxable income.
3. The retirement plan contribution deduction:
If you contribute to a retirement plan, such as a 401(k), you can deduct that amount from your taxable income.
4. The equipment purchase deduction:
If you purchase qualifying business equipment, you can deduct the purchase price from your taxable income.
5. The advertising deduction:
You can deduct the cost of advertising your business from your taxable income.
6. The vehicle expense deduction:
If you use your vehicle for business purposes, you can deduct the cost of operating and maintaining it.
7. The travel expense deduction:
If you travel for business purposes, you can deduct the cost of transportation and lodging.
8. The home office supplies deduction:
You can deduct the cost of any supplies used in your home office from your taxable income.
9. The education expenses deduction:
You can deduct the costs of continuing your education if it’s related to your business.
10. The health insurance deduction:
If you pay for health insurance premiums yourself, you can deduct those premiums from your taxable income.
11. The business use of your home deduction:
If you use a portion of your home for business purposes, you can also deduct that amount from your taxable income says Aron Govil.
12. The state and local taxes deduction:
You can deduct the amount of state and local taxes you pay from your taxable income.
13. The charitable contributions deduction:
You can deduct the amount of money you donate to charity from your taxable income.
14. The self-employment tax deduction:
If you’re self-employed, you can deduct half of your self-employment taxes from your taxable income.
15. The home office deduction:
If you use a portion of your home exclusively for business purposes, you can deduct that amount from your taxable income.
16. The equipment purchase deduction:
If you purchase qualifying business equipment, similarly you can deduct the purchase price from your taxable income.
17. The vehicle expense deduction:
If you use your vehicle for business purposes moreover you can deduct the cost of operating and maintaining it.
18. The travel expense deduction:
If you travel for business purposes, you can deduct the cost of transportation and lodging.
19. The education expenses deduction:
You can deduct the costs of continuing your education if it’s related to your business.
20. The health insurance deduction:
If you pay for health insurance premiums yourself, you can also deduct those premiums from your taxable income.
21. The business use of your car deduction:
If you use your car for business purposes, you can also deduct the cost of operating and maintaining it.
22. The internet expense deduction:
You can deduct the cost of any internet service used for business purposes from your taxable income.
23. The cell phone expense deduction:
You can deduct the cost of any cell phone service used for business purposes from your taxable income.
24. The home office supplies deduction:
You can deduct the cost of any supplies used in your home office from your taxable income.
Conclusion:
Running a business can be costly, but there are a number of deductions you can take to reduce your taxable income explains Aron Govil. For instance, Some of the most common deductions include the self-employment tax deduction. However, the retirement plan contribution deduction, and the advertising deduction. You can also deduct the cost of operating and maintaining your vehicle if you use it for business purposes. As well as the cost of traveling for work. Additionally, you can deduct the costs associated with continuing your education and health insurance premiums. Be sure to speak with a tax professional to learn more about which deductions are available to you.
When it comes to running a business, there are a number of costs to consider. However, you can take a number of deductions to reduce your taxable income. In conclusion Some of the most common deductions include the retirement plan contribution deduction, the advertising deduction, and the home office deduction. Additionally, you can deduct the cost of operating. And maintaining your vehicle if you use it for business purposes, as well as the cost of traveling for work.