Don't Overlook These Business Expenses!
Business Owners...As we are nearing the close of this tax season, make sure you are taking advantage of every opportunity to cut your tax bill.
Business owners can deduct business expenses from the amount of income they earn throughout the year. For an expense to qualify as a “business expense” it must be directly related to the business and it must be necessary for that business.
Some of these business expenses may include the following:
Business Use of a Home Office including: utilities, garbage, phone, internet, etc.
Business travel expenses including: meals, transportation, hotel, taxi, etc.
Purchase of tools and supplies for work
All business related meals and entertainment
Educational materials, classes, seminars
Bank, ATM, credit card fees
Business use of cell phone
Business use of Automobile including mileage, gas, auto maintenance, insurance, etc.
Medical/health insurance premiums paid
Business/trade magazines, newspapers, memberships, business cards, etc
Computer equipment, software, computer accessories, web hosting, etc.
Tax Preparation services
Although these business expenses can add up and significantly maximize your tax savings, it is very important that you keep track of every expenditure so that you can prove, in the case of an IRS audit, that your write-offs are “ordinary and necessary” in your trade or line of business. You must keep meticulous records to avoid stiff IRS penalties and fines.
Please consult with your accountant or certified bookkeeper for further explanation of these deductions and expense requirements and to verify if they apply to you.