Saving money is crucial when you run your own small business. One of the best ways to do this is to be aware of all the tax deductions you can take. It helps to know what you can and can’t claim in your role as an entrepreneur.
Most equipment that you will purchase for your office is tax-deductible, but there are some exceptions to this. For example, some pieces of equipment are seen as capital assets. When it comes to office supplies like stamps, paper clips, and ink cartridges, this may be the biggest part of your tax deduction every year. It’s important to keep receipts for every purchase of items to be used in the office.
Furniture must be a vital part of your office to be considered deductible. You can include these purchases in a total expense plan or you can claim the furniture as an asset which will deprecate. Yet it isn’t the only thing that you can claim as a deprecating asset. This also applies to any commercial vehicles or buildings you may purchase for your business.
Hardware and software can also be written off on your taxes. This includes programs such as Microsoft Word. It also includes USB devices and storage drives. In order for them to be tax-deductible, you must absolutely need them to run your business and they must be used only for business purposes. Tax deductions can also be applied to the cost of subscription services and licenses services for programs including Adobe Photoshop.
All of your business-related travel expenses can be deducted from your taxes. This includes airfare and hotel rooms, as well as parking fees and any other expenses you incur while doing your job. Even if you give cash tips to hotel staff, waiters, and other similar individuals, the tips are tax-deductible.
Employee pay and benefits can be deducted as well. This applies to all employees whether they earn a salary or are paid by the hour. Every payment you make into an employee’s 401k is deductible, as are payments towards life insurance and health plans.
For more information on what you can deduct on your business taxes, please contact Capital Crown Investments.