As a small business owner, your profit margins are already probably thin. So when tax time rolls around, you're probably trying to take advantage of every legally allowable tax deduction. But after already deducting your legal fees, holiday gifts, tithing, and even donuts, what's left for you to write off?
Quite a few things, actually, according to Forbes. Here are a few they highlighted for small business owners this year.
Miles and Miles
You may know that business travel is expense-able, but you might not know what business travel is expense-able. You can deduct travel expenses for work and between work and home, including:
- Travel to and from work, even in a personal vehicle;
- Travel between the hotel and airport or station on work-related trips, as well as travel between the hotel and business destinations;
- Baggage and shipping;
- Business calls, faxes, and communications;
- Meals; and
- Tips for any expenses otherwise deductible.
Debt and Loss
A lot of small businesses get off the ground with a loan, or get through the month on a corporate credit card. As Forbes points out:
If you get a business loan or credit card, or if you use a personal loan or credit card to finance business purchases, you may be able to deduct any interest the financier charges you. If your financier doesn't issue an annual statement detailing interest charges, you can typically find the amount billed on your monthly or quarterly statements.
Also, if a customer or client can't or won't pay, you may be able to write off the loss as a bad debt. Unpaid loans to clients or suppliers, unremitted credit sales to customers, and even business loan guarantees may fall under the bad debt deduction.
Home and Office
If your small business is operating under the same roof as your bedroom, there may be quite a few home office deductions that you can take. But a few caveats:
- Your home office must be dedicated exclusively to work;
- Your home office must be your primary place of business;
- Work in your home office must be related to your business; and
- You must work in your home office regularly.
For the best information on all of the tax deductions your small business can claim, contact an experienced tax attorney today.
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