What Taxes Can and Can’t You Deduct from Your Small Business?
As a self-employer or founder of a small business, it can be difficult and sometimes overwhelming to file taxes. However, if you’re willing to sift through the paperwork and read the fine print, you can save your business a great deal of money with tax deductions. Our Miami accounting firm wants our clients to run their business effectively with the knowledge to undertake the tax aspect of it. Here are some basics tax tips on deductions for your business.
1. Home Office
Many small business owners are afraid to claim “home office” deductions for fear of being approached by an auditor. Fear of an audit should never keep you from claiming rightful deductions. In this event, make sure you keep well-organized records, and can prove that your deductions are solely for business expenses.
2. Technology Purchases
Under Section 179 of the tax code, equipment expenses such as computers, printers, and even company vehicles are tax-deductible, up to a certain amount. Depending on the item, you can deduct the full cost on the year of purchase, or split it between several years. Conferences and business-related software, websites and magazines also qualify. Keep in mind, though, that the amount you can deduct under Section 179 does change yearly.
3. Travel Costs
Since travel can be necessary for business success and expansion, many of the expenses are completely tax deductible. It is recommended that you write off expenses like airfare, hotel fees, car rental and mileage and travel expenses. Remember these points when deducting business travel expenses:
- The costs for you, and only those that are business-related can be deducted.
- For meals with clients, those costs are 50% deductible.
- Conference fees are deductible as long as the conference is directly useful for your business.
As with all finances, especially taxes, it’s imperative to keep any receipts and details regarding your business. The more organized your finances are, the more you can focus on making your business successful.
At Verdeja, De Armas & Trujillo, LLC, we understand that the cost of running and maintaining a business is high, but filing your taxes knowledgeably can reduce many of those costs. Our services are here to inform you of what you need to know to have your business flourish to its full potential.