What You Need to Know About Small Business Tax Deductions

Are you a small business owner? If so, you’re going to need to stay on top of paying your business taxes.

There are all kinds of tax errors that small business owners make every year. These errors cost small business owners quite a bit of money, and in some cases, they even put their businesses at risk.

One thing that you should make sure you do is take advantage of the small business tax deductions available to you. You can deduct a wide range of small business expenses and save yourself money on your taxes each year.

Here is what you need to know about small business tax deductions.

What You Can Deduct When Doing Small Business Taxes

As a small business owner, you likely encounter a lot of business expenses throughout the course of a year. Many of these business expenses will serve as small business tax deductions.

Here are some of the things that you can deduct when you’re doing your small business taxes during tax season:

  • Rent
  • Equipment costs
  • Office supplies
  • Insurance premiums
  • Inventory costs

If you happen to own vehicles that are in your small business’ name, they might also help you get small business tax deductions. Check out this Section 179 deduction vehicle list 2021 to see how large of a dedication you can claim.

What You Can’t Deduct When Doing Small Business Taxes

As you can see, there are plenty of things that you can claim as small business tax deductions during the small business tax filing process. But you should know that you aren’t going to be able to deduct every single business expense that comes your way.

Here are some of the things that you cannot deduct when you’re doing your small business taxes during tax season:

  • Political contributions
  • Membership dues
  • Business attire worn outside of work

If you get caught trying to claim any of these things as small business tax deductions, you could face penalties from the IRS. It’s best to leave them out of the equation when you’re filing your business taxes.

Getting Help With Your Small Business Tax Deductions

It can be difficult trying to figure out what small business tax deductions you can claim on your business taxes. It’s why you should enlist the services of a tax professional to help you out.

Your small business should establish a close working relationship with an accountant in your area. They’ll be able to help you make the most of small business tax deductions.

Take Advantage of Small Business Tax Deductions Each Year

If you fail to claim any small business tax deductions on your business taxes, you’re going to pay more than you should have to when it comes to settling up with Uncle Sam each year. Avoid doing this by educating yourself on the small business tax deductions that are available to you.

Would you like to get more tips on running your small business more effectively? Find them in some of the other articles posted on our blog.

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