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, filing fees, and professional fees.
2. Supplies, Materials, Subscriptions:
Also 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
Moreover, 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.
4. Equipment
In addition, printers, and other equipment that is used in your business can be tax-deductible. Often, these purchases are considered a “capital expense” that needs to be depreciated.
5. Rent
As well as one of the huge ones-rent. 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.
6. Utilities
Likewise, utility payments for your office are deductible as well. Things such as electricity, internet, and telephone bills, fall under deductible business expenses.
These deductibles aren’t all you can deduct to cut back on expenses for your small business. Check out this episode of All Up In Yo’ Business for more information on small business tax deductions that you do NOT want to miss.
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