As a small business owner, you want to make sure you are taking advantage of all the deductions and tax credits available to you. While there are some obvious deductions that most business owners know about, there are also some lesser-known ones that can be beneficial. Let’s look at some of the overlooked deductions that can help your business save money on taxes.
Business Use of Home Expenses
Did you know that if you use part of your home as an office or to store inventory, you may be able to deduct the related expenses? These expenses include repairs and maintenance, utilities, insurance premiums, and other costs associated with running a home office. To qualify for this deduction, you need to use the space exclusively for business purposes during regular hours and it must be your primary place of business.
It goes without saying that office supplies like pens, paper, ink cartridges, etc., are tax deductible for businesses. But did you know that other items such as cleaning supplies used in common areas can also be deducted? The key is to make sure all purchases directly relate back to running your business operations and not just personal items.
The cost of advertising is another overlooked tax deduction for small businesses. This includes everything from marketing materials like brochures and posters to paid ads on websites or search engines. It’s important to keep track of these costs as they can add up quickly over time and result in significant savings come tax season!
If you use your personal cell phone for business, a portion of your monthly bill can be a tax deduction. The percentage of use dedicated to business calls that can be proved is allowed.
As a small business owner, it pays off to do research into what types of deductions you qualify for so that you don’t miss out on any potential savings when filing taxes. From office supplies and advertising costs to home expenses related to running your business from home—there are plenty of overlooked deductions available which can help lower your overall tax liability. Taking the time now will mean big savings at tax time!