- Top Financial Tips for Young Adults Entering Independence - August 10, 2020
- 3 Tips for Financially Handling Unexpected Repairs or Replacements - August 10, 2020
- 4 People You Need to Talk to When It’s Time to Close on Your House - August 10, 2020
No one likes paying taxes. This is especially true for business owners that put so much effort into making the earnings they receive. Thankfully, there are things you can do as a business owner to lower your tax burden so you can keep more of your profits and reinvest them into your company. One way you can do this is through tax deductions. In fact, there are some business tax deductions you may have not even considered before.
Work Related Vehicle Expenses
If you use your vehicle for work, you probably know you can deduct vehicle related business expenses. Just keep records proving you used it for business. This includes things like gas and oil changes. However, there are other expenses you can deduct you may have not considered. If you are painter, you may need to keep paint, brushes and other supplies in your truck bed under a tarp. You can actually deduct the price of truck bed tarps from income taxes.
One business tax deduction that many business owners overlook is deducting the price of office furniture. If you are just starting your business, you’re allowed to deduct up to $5,000 in office furniture. Your trip to IKEA may in fact be deductible.
The legal business code in most jurisdictions is extremely complex. Chances are you’ll need the services of an attorney at some point to help you figure out things like legal contracts. Thankfully, professional services like attorney’s or accountant’s fees are deductible as long as they are for necessary and ordinary business purposes.
Computer software is another business expensive that few business owners actually deduct from their taxes. Deducting computer software can sometimes be complicated. It is classified as an intangible under the tax code and needs to be amortized over a period of 15 years if it is bought with hardware. If it’s purchased separately, deducting it is easier. There are many kinds of business related software you can deduct including things like Microsoft Office, Adobe Photoshop or even an Adobe Creative Cloud suite.
The physical cleaning of your office or other facilities can also be deducted. If you have to pay for outside help to handle that cleaning and can produce the records to prove it, you can certainly deduct those janitorial services. Just make sure those cleaning expenses are for your business and not your home. Running a business can be extremely difficult. You have to struggle just to make a meager profit. Having to send a percentage of what you made to the IRS can be frustrating. Thankfully, you can use business tax deductions to shrink your tax burden.
Kara Masterson is a freelance writer from Utah. She enjoys tennis and spending time with her family.
All content on this site is the property of Taxbot, LLC, The Profit Junkie Podcast, or the author. You may link to any article that you wish, or share via the social media buttons below. However, please do not copy articles or images for use on other sites without express written permission.