One of the biggest concerns for any business is taxes. The more you can write off helps you keep more of your money to use on your business. When you’re starting a new small business, it becomes even more critical to know what you can use as a deduction as you are trying to scrounge as much money as you can to keep afloat. Here are same common deductions for small businesses.
Of course, if you’re starting your business at home there’s your office space. The IRS says the space must be devoted to your business and absolutely nothing else. It can be a full room, or only part of a room. What you need to do is measure the square footage of your work area and divide by the square footage of you house. You can then use that percentage against the total expenses of your home.
Hang onto all your receipts, there are office supplies that you can use as a deduction. There’s also furniture you can deduct. There are two ways you can deduct furniture, you can either deduct the full costs of the furniture the year is was purchased, or deduct a portion of the expense over seven years. It’s better to consult with a small business tax expert to find out which is best for you.
Any business-related software and industry related subscriptions can be deducted the year you purchased them.
If you need to drive anywhere in the course of your business there’s mileage you can deduct but you have to, make sure you keep all your records. If you’re buying the car, factor in the interest on your loan and depreciation on your vehicle.
These are all simple concepts and usually only require that you save records or keep logs for the information. But unless you’re a tax specialist, it is highly recommended that you consult a tax service or professional for the best information and advice.