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Tax preparation can be a stressful undertaking for anyone, but can be especially difficult for small-business owners. With so much information to keep track of, it becomes easy to overlook something important. You would do well to double-check the following categories in order to ensure you aren’t missing out on an additional write off.
Medical expenses and other healthcare costs can often be more deductible than many business owners realize. If your businesses is a proprietorships, it may be possible to deduct the entire amount of your health insurance premiums. Assessing your insurance and medical expenses could turn up more than one write off that you might otherwise end up missing out on.
Software and Subscription Services
While business owners often deduct the upfront cost of software or business-related applications, ongoing subscriptions often end go overlooked. These expenses can quickly add up, especially for businesses that utilize expensive applications or that need to provide their staff with multiple subscriptions in order to make use of specific software or online services.
Using a car for business means that mileage, repairs and other service-expenses may all be deductible. Even the purchase of a new vehicle may be a potential business write off. If you are interested in finding new Ford cars for sale, buying a work vehicle for your travel or service delivery in your business. This could end up being far more affordable than you might expect. From using your personal commuter vehicle to get to and from the office to starting a fleet for your small business, transportation expenses are one financial category you won’t want to overlook. Talk to your accountant to know the specifics on what’s deductible to make sure you get the best savings.
Maintaining a home office is another potential write off that can easily be forgotten. Whether you are running your business from the house or just taking your work home with you, taking full advantage of the tax benefits that having a home office is able to provide is a smart move. Just make sure that your office, purchases and work habits meets all of the criteria before claiming it as a write off.
Having a client or a service provider who fails to pay up can actually be a deductible situation. You would do well to learn the difference between a cash basis and an accrual basis before attempting to claim outstanding debts as a deductible. When in doubt over the status of a debt, discussing your options with a professional accountant could prove to be a worthwhile precaution.
Kara Masterson is a freelance writer from Utah. She enjoys Tennis and spending time with her family.
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