The deadline for filing taxes is more than a month off, but it never hurts to be thinking of tax deductions that save your business money. Below is a short list of deductible items/categories you may not have thought of that are available to help you reduce your tax bill.
Costs of starting up
It often takes advertising, travel, transportation, legal advice and other costs to get a business up and running. You can take up to $5,000 in startup and $5,000 in organizational expenses — with certain restrictions based on your total expense amount.
If you drive for work and have documented when you're driving, your car's mileage and how much you paid for parking and tolls, you may be able to turn that into tax savings.
Using a room in your home for only business purposes allows you to deduct that use from your taxable income. However, be aware that the new tax law does not allow employees working from home on behalf of their employers to take this deduction.
Money lost on debts not collected
Unpaid accounts or advance wages to an employee no longer with the company are a couple of examples of ways you may qualify for this deduction.
Educating and training employees
If you pay for your employees to receive professional training or education, your business could use this expense to help reduce what you pay in taxes.
Office supplies, furniture
Keep your receipts, and you can shave the costs of supplies off your taxable income. This category now includes used equipment and allows the full price of furniture to be subtracted from gross income, with certain limitations.
Be thinking about laptops, software, tablets, phones, and other electronics. The computer software must be new, and items up to $2,500 bought in that tax year may be expensed.
Don't let these ways to save pass you by. Tax breaks for small businesses like yours can help your business thrive, and, in turn, benefit the economy.