Common Business Tax Deductions to Maximize Your $$ This Tax Season
There’s two types of people in this world: those who prepare their taxes in January, and those who wait until April. Which one are you?And guess which one I am...
Below are a handful of common tax deductions for business owners and those who work for themselves. Note - if you’re submitting only personal tax returns, and no business returns, make sure to take the following on your Schedule C, where applicable.
Insurance: Professional liability insurance, malpractice, rental, property, cyber, liability coverage
Educational courses: continuing education, workshops, etc.
Legal and Professional Fees: professional certifications (NASM certification), my bar membership) **did you know you can deduct the legal cost of reviewing a real estate lease?!
Parking costs and fees: meters, lot fees, fasttraks, etc
Mileage for driving to your job (applies to independent contractors only)
Salaries, wages and contract work (applies to business owners only)
Business supplies necessary to perform the work of the business: iie - cleaning supplies for a cleaning business; fitness equipment for a training business; your cell phone and home internet
Rent on business owned properties, like your office space
License/rental fees for business equipment
Meals - up to 50% of business-related meals can be deducted
Office supplies + expenses
Marketing expenses: this one is HUGE for business owners and can amount to a substantial % of your expenses
Losses from previous years: yup they carry forward so you can continue to offset your tax liability
Interest on business loans for business expenses: your loan holder will provide you with a 1099-INT form, and there will be a space on your taxes for this exact number.
I hope these help save you some major $$ this year! I know I saved loads taking ALL of the deductions my business is entitled to.