Don’t Forget These Small Business Deductions!
In every town there are small business owners that are helping America’s citizens whether it be through services, sales, or other business ventures. The problem is sometimes running a small business can be expensive and difficult, sometimes the owners are struggling to find ways to save money. Well fear not because there are some deductions on your taxes you may be forgetting about! These will help you save money on your year-end taxes, and maybe a larger tax refund.
One deduction that many people may forget about is salaries and wages. This applies to payments to employees that include salaries, wages, bonuses, commissions, and taxable fringe benefits. These are all deductible business expenses.
Depreciation is another deductible that is highly valuable, and it is used to allow businesses to depreciate property over its estimated lifetime. By depreciating the property and supplying the deductible, it encourages business owners to purchase equipment for their business. For more information, look toward Sec. 179 of the Internal Revenue Code.
Another common and useful deduction is utilities. Electricity for your business is fully deductible, and other utility costs can even include your cell phone.
If you’re a small business owner wondering about deductions as the year comes to an end. Stay up-to-date with our blogs as we’ll address more potential deductions in the future. If you have questions more immediate than that, contact us at the Center for Financial, Legal & Tax, Inc.