If you’re still looking for small business tax deductions, you’ve come to the right place. Previously, we covered the first four on the list from the True Resolve Tax Professionals here in Denver.
Today, let’s look at even more ways to save you money and reduce your tax liability. And if you need even more guidance along the way, we’re here to help.
One of our experienced, Enrolled Agents can work with you one-on-one to not only help you during tax season but develop key tax strategies throughout the year. This will ensure you pay the least amount of taxes legally possible.
For now, let’s look at small business tax deductions 5-8.
Whether you’re interested in completing your degree or taking extra certification courses, most education expenses are completely deductible.
With that said, the education must relate to your business. This can be an excellent incentive for going back to school or taking extra courses that will help you run your business more efficiently.
In addition to tuition fees, you will also be able to write off other related expenses. These may include textbooks, study prep material, and lab fees.
- Home Expenses
Whether you run an Etsy shop or write for a personal blog, if you use your personal home for business, it counts for small business tax deductions.
The expenses you can deduct may include:
- Rent or mortgage payments
- Homeowners insurance
- Maintenance fees
- Mortgage interest
- Depreciation costs
The IRS does have specific requirements for this deduction to qualify.
First, you need to regularly use part of your home exclusively for business purposes. Second, your home must be considered your principal place of business.
That’s because the IRS knows that if you didn’t use your home for business, you’d have to rent out a place elsewhere.
Therefore, the IRS actually rewards individuals who choose to work from home, as it’s typically due to the desire to be efficient with time, money, and resources.
For example, if you use an office devoted to your business, you may be able to reduce a percentage of your mortgage costs. If, on the other hand, you use just a fraction of the room for your business (like a desk), you may need to measure out that space to qualify for the deduction.
- Moving Expenses
If you’re planning an upcoming move, it may qualify for small business tax deductions.
In order to qualify for the deduction, you must be moving because of your business. Additionally, your new workplace must be at least 50 miles from your old workplace.
Moving costs can quickly add up, and you can usually deduct:
- Moving supplies (boxes, tape, markers, paper, bubble wrap)
- Professional mover’s insurance
- “In transit” costs (gas, tolls, lodging, food)
Since it can be such a costly transition, make sure that you are taking advantage of the small business tax deductions available to you.
- Advertising and Promotion Costs
Unless you rely solely and completely on word-of-mouth referrals, you probably have some kind of marketing budget.
Fortunately, you can deduct the costs associated with advertising and promotion. Typical expenses that may count for deductions include:
- Paper advertisements (brochures, business cards, merchandise, mailers)
- Large-scale advertisements (commercials, billboards, sponsorships)
- Seminars and workshops
Today, many entrepreneurs take advantage of digital advertising services to promote their business. You can deduct all these expenses as well. Common costs may include domain hosting, sponsored social media ads, websites, and online marketing campaigns.
In general, if the items or services are used to increase attention and awareness of your business, it’s tax-deductible. Just makes sure you hold onto all your receipts!
And, yes, if you hire someone else to help you with marketing or promoting, those services are typically tax-deductible as well.
Want More Small Business Tax Deduction Ideas?
The True Resolve Tax Professionals understand how hectic it can be running a small business. However, if you can spare a little time out of your day for a tax discovery session, our experts can start honing in on new, money-saving opportunities while you focus on running your business. Get in touch!