Posted on: 29 August 2019
Tax season is difficult enough for the average taxpayer, but when it comes to small business taxes, the whole process can become far more complicated. Unfortunately, for many small business owners, trying to do their taxes on their own can be complicated. There are many different deductions that you could use to reduce your tax liability as a small business owner. Here are a few to think about.
Home Phone Expenses
While you can't write off the full cost of your only home phone line as a business expense, you can write off the cost of any long-distance calls, call waiting, and other features that you may have added for business purposes. However, those features must be used exclusively for your business needs.
If you have a second phone line for business use, whether it's an additional landline in your home or a cell phone line you've purchased for the business, you can write that line expense off as a business tax deduction.
Gifts You Give Away
If you purchase gifts, whether for individuals or companies, to give away on your company's behalf, you can typically write those off as part of your business expenses. Remember that you can only write off one inexpensive gift per person. Gifts that you give to a business entity are not subject to the same limitation.
Accounting And Tax Service Costs
When you pay a professional to help you manage your accounting system or you pay someone to organize and complete your taxes, you have the ability to write off those expenses as business deductions. This can help reduce your tax liability while paying for your tax preparation.
Subscriptions And Website Access
Whether you have purchased magazine or service subscriptions, or you pay for access to industry-related websites, if those subscriptions and sites are being used for business purposes, you can write off those costs as business expenses and tax deductions. These subscriptions can add up to significant tax savings.
If you attend or send your employees to any training sessions or continuing education programs, the cost of those programs can be listed as tax deductions. They are legitimate business expenses and, therefore, can reduce your tax liability significantly.
The more you understand about your small business tax liability and tax filing tips, the easier it is to ensure that your taxes are accurate and complete. You can contact a small business tax planning specialist near you for more information.Share