Running a business can be expensive. You have to take care of a lot of different things including running the business, taking care of your customers, and ensuring that your employees are doing the job that they should each day. This is not always the easiest job and while you may be doing something that you really love, it is going to keep you pretty busy. When it comes to the end of the year, you could use all of the breaks that you can get with your business expenses.
There are several deductions that you can enjoy as a business owner that will save you a lot of money and makes your business run more smoothly than before. You can deduct things like medical insurance, some of the supplies that you purchased for the business, and so much more. When you are ready to find out about all the deductions that you can qualify for with your business, make sure to contact a tax professional in your area as soon as possible.
Employee Insurance
If you offer insurance to your employees, you will be able to deduct some of these expenses off your tax return at the end of the year as well. Your insurance provider should be able to provide you with some paperwork to show what you will be able to deduct to make this a bit easier. Make sure that you are getting this deduction on this great employee benefit to save yourself some money on your tax return at the end of the year.
Office Supplies
Your business is going to have a lot of office supply expenses. You will need to keep up with paper, computers, printers, and so much else to make the business work as efficiently as possible. And with the help of your business deductions, you could get some of the money back for this at the end of the year.
To get this kind of deduction, you will need to keep some good records through the year. Anything you purchase, make sure that you are writing down or keeping all of the receipts that you get for the year. You can bring these in to your tax professional at the end of the year and get some money off. While you won’t get the full amount back at the end of the year, it can make a big difference when you are starting out or need some help.
In the past, you had to deduct just a bit of the supply over the life of your equipment. For example, you would deduct a computer over three to five years. Now the rules have changed so you are able to deduct the full price all at once to help offset the costs right away instead of down the line.
In addition, if you have to pay mortgage and utilities to run the business during the year, you could deduct some of these expenses as well. You should keep good track of your receipts for these costs for the year as well as any of the other cots that you have through the year so that your tax professional can find as many deductions as possible to save you some money.
Home Office
Many businesses will work out of their own home offices. This helps to save a lot of time commuting, allows some parents to work from home, and can even save some money compared to having a new building to keep track of all the time. If you work out of your home office, you can deduct some of these expenses and save a lot of money in the process.
If you are planning on using the home office deduction, you need to use the home office at least fifty percent of the time for your business. You will also need to figure out what percentage of the home is be used as an office. You are not using the whole house to do your work so you will not be able to deduct all the expenses of the home in this deduction. Once you figure out how much of the home you are using for business, you will be able to work with your tax professional to figure out the amount that you can deduct on your tax return.
Travel
If you need to travel quite a bit for your business, you could deduct some of the expenses that you receive from this. You will need to figure out how much of the vehicle you are using for the traveling; for example, if it is also a family vehicle, you will not be able to count all of the miles and all of the repairs. On the other hand, if you have a vehicle that is just for business use, you will be able to count all of this stuff during tax time. Make sure that you are keeping good records through the year so that your tax professional is able to help you get the most possible out of this deduction.
As a business owner, you have enough to worry about on a day to day basis. Rather than worrying about new ways to save money, work with a local tax professional who can save you a lot of money during tax season. Contact our offices today to get the most out of your tax return today.
Simon Hase, CPA