If you are like most small businesses in the United States you wear a lot of hats when it comes to your company operations. As a small business owner, you also have the least room for error.
Most small businesses and especially new businesses don’t have the experience need to push paperwork to the IRS, and sometimes don’t realize which tax breaks they are eligible for.
There are tax breaks for specific industries, but there are a number of breaks that just about every business can benefit from, regardless of the operation…
Below are just a few tax tips that can help your small business get more back come tax time:
Legal and Consultancy Fees
This is a great place to start because every small business has expenses in this category., so why not make sure you get the benefit of the tax breaks. The tax code will give small business owners breaks on fees that are considered a cost of doing business. Expenses could include tax preparation, lawyer fees, or even an IT consultant. The only caveat is if the expenses are not expected to benefit your company for a couple of years, then you are required to spread the deduction over the life of the benefit.
For more information:
Deducting legal, professional and tax preparation fees
What kind of business expenses are deductible
Marketing Expenses
The IRS allows tax deductions for expenses that are used to build your brand or get your name out there. Those expenses could be as simple as business cards or paying for Little League jerseys for your local team.
You can get more information go here:
Publication 535: Business Expenses
Deducting the costs of operating your business
Bad Debt and Theft
One of the toughest things for a small business to deal with is when a customer doesn’t pay their bill or goods are stolen. The IRS will cut you a break, but they do not allow you to place a dollar amount on your time. Services sometimes don’t get to apply for this specific tax break.
For more information:
What is a bad debt and how to claim it
Loan Interest
One of the biggest deductions that you can claim as a small business owner is interest and carrying charges for loans and credit. On large purchases, the majority of your loan payment is interest at the beginning.
For more information:
Tax treatment of business interest expense
Deducting interest as a business expense
Networking
You can write-off many networking expenses including business gifts, meals, trade-show attendance, or even dues to professional associations. Some events can even qualify for continuing education expenses or improving your skills.
For more information:
