For small business owners, every penny matters; thus, you may not lose a chance to save your taxes. There are certain small-business tax deductions that you must not be aware of or simply do not consider while filing tax returns. That’s when a CPA in Burlingame, CA, can help! In this article, we have jotted down some common tax deductions that every small business owner must know. So, without any delay, let’s dive in!
Common Tax Deductions To Know
1. Vehicles
Whether you drive regularly to the post office for business work or drive weekly or monthly to conduct client meetings, these expenses are deductibles. Ensure you keep track of all auto-related expenses like insurance, repairs, loan interest, maintenance and gas.
2. Travel
Traveling expenses are the ones associated with traveling to attend conferences, meet a client, make business-related trips and more. During the taxation season, you can write off travel expenses like rental cars, dinner with clients, airfare, taxi, uber, accommodations and others. Expenses such as getting your clothes dried are also counted as deductible expenses.
3. Home Office Expense
Do you work from home regularly? If so, you can claim a home office expense tax deduction while filing the tax for a particular financial year. In case the same room is also used as a workout or guest room, it cannot be counted as a deductible home office expense. Make sure you follow all strict guidelines to save your money.
4. Advertising and Marketing
Marketing and advertising are the two most important ingredients to grow your business. For small business owners, the cost used in advertising and marketing can be written off. Some common examples of marketing and advertising tax deductibles are direct mail pieces, business cards, online ads and billboards.
5. Office Suppliers
Tracking all materials related to your office is important as those are tax deductibles, ultimately reducing your taxable income. From smartphones to computers, pens, tables, chairs, everything can be included that helps you save money. You can also mention smaller equipment like pencils, stamps, sticky notes, paper and envelopes.
Wrapping Up
The aim of every business, regardless of its size and status, is to generate maximum profit. During the end of the financial year, all business owners pay taxes. However, you may fail to identify common tax deductions that save a lot of money and increase your profits. This article highlights the top 5 common tax deductions that you must be aware of.
