Running a small business can be very costly. Between office rent, payroll, office supplies, travel costs, those business expenses sure can add up fast. Thankfully, most of the costs and expenses that we incur in our business are tax-deductible business expenses. Here are a few small business tax deductions that you do NOT want to miss.
1. Start-Up and Organization cost:
You can deduct your startup and organizational costs incurred in starting a business. Startup costs can include things like buying supplies, travel expenses, market research, and advertising. Organizational costs include costs to form a business entity, filing fees, and professional fees.
2. Supplies, Materials, Subscriptions:
The costs for your everyday office supplies and incidental materials are tax-deductible. You can also deduct the cost of any apps or other subscriptions that you use in your business.
3. Employees, Contractors, and Service Providers
Your business can take a tax deduction for all costs associated with your employees, contractors, and service providers. Payroll and associated taxes and fees, payments for contract labor, and payments for other service providers are all tax-deductible.
Computers, printers, and other equipment or machinery that is used in your business can be tax-deductible. Often, these purchases are considered a “capital expense” that needs to be depreciated.
Payments for office rent are fully deductible. This also includes payments for a PO Box or private mailbox, or virtual office/co-working space rentals.
Utility payments for your office such as electricity, internet, and telephone bills, are deductible business expenses.
7. Retirement Plan
Business owners can make tax-deductible contributions to a SEP IRA, Simple IRA, or Solo 401(k).
8. Travel Expenses
Expenses associated with business travel are also deductible! This includes things like airfair, lodging, and transportation costs.
Meals are deductible, as well…to an extent. You can deduct 50% of your travel and business meals.
Your insurance premiums, including general liability, errors and omissions, and even health insurance premiums, can be deducted.
Mileage is a big deduction that a lot of businesses can easily miss. The mileage reimbursement rate for 2019 is .58 cents per mile. You can take a deduction or reimbursement for business-related mileage.
Advertising and marketing costs are tax-deductible. This includes things like Google or Facebook ads, billboard advertisements, magazine advertisements, etc.
13. Credit Card Processing Fees
If you accept payment over credit cards then you know it can be pricey. Thankfully, you can deduct the fees charged by your credit card processor.
14. Education Cost
Educational expenses can be a small business tax deduction if the education is used to improve or maintain your current skill set, or if it is legally required.
Check out All Up In Yo’ Business on YouTube for more information on small business tax deductions.