Small Business Tax Deductions Part One

1
Small Business Tax Deductions Part One
2

• There is a mindboggling array of tax deductions
  that small businesses may be entitled to and
  whittling down the ones that might apply to you
  and your business, can be tricky.
• This list of deductions is designed to help you
  understand which ones you might be entitled to,
  but you should always check with a tax
  professional if youre unsure
• Vehicle expenses
• Keeping records of work-related journeys made by
  your vehicle, is essential if youre to get the
  most out of this deduction.

3

• At tax time, you can opt to deduct your actual
  expenses such as gasoline, maintenance and
  parking, or simply calculate your mileage.
• An office at home
• If you run all, or some of your business from
  home and have a specific room dedicated for this
  purpose, then it might be tax deductible.
• Bonus depreciation
• If you buy new capital equipment for your
  business, then there is a depreciation tax break
  that enables you to deduct 100 of your costs
  upon purchase. Youll need to check exactly what
  equipment qualifies under the Tax Cuts and Jobs
  Act, however.

4

• Professional services
• Should you hire a professional business
  consultant to help you grow your enterprise, then
  their fees and overall cost are deductible,
  provided those fees are considered reasonable
  enough to qualify, that is.
• Wages and salaries
• As the sole owner of a business or of a company
  that is an LLC, you can deduct from salaries and
  wages that are paid to part-time and full-time
  employees even if you cant deduct draws from the
  income that you make.

5

• Work opportunity tax credit
• There is a credit called the Work Opportunity Tax
  Credit that you may be eligible for if youve
  hired military veterans or other long-term
  unemployed people to work at your business.
• Office supplies and expenses
• Whether your business has a traditional office or
  not, you can still deduct conventional business
  supplies and office expenses provided theyre
  used within the year that they were bought, and
  that you have valid receipts for them, of course.
  It may also be possible to deduct the cost of
  postage, shipping and delivery services if
  mail-order makes up part of your business.

6

• Client and employee entertainment
• Provided actual business is discussed during an
  entertainment event held within a business
  setting, and for business purposes, then you may
  be able to deduct some of the costs incurred, if
  not all of them.
• Freelance/independent contractor labor
• You should be able to deduct the costs of hiring
  independent contractors to help out at your
  business, but you must be sure to issue a Form
  1099-MISC to anyone who earned 600 or more from
  you during the tax year.

7

• Furniture and equipment
• When it comes to small business tax deductions
  for furniture and equipment, you can either
  deduct the whole cost for the tax year that it
  was bought in, or depreciate the purchases over a
  period of seven years.
• Note that these are just a fraction of the
  possible tax deductions for small business
  owners, and should you wish to know more, reach
  out to your local tax professional.

8

• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami, Heyer Associates would be a right
  option.