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:
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Business Use of a Home Office including: utilities, garbage, phone, internet, etc.
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Business travel expenses including: meals, transportation, hotel, taxi, etc.
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Entertainment expenses
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Purchase of tools and supplies for work
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All business related meals and entertainment
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Educational materials, classes, seminars
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Bank, ATM, credit card fees
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Business use of cell phone
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Business use of Automobile including mileage, gas, auto maintenance, insurance, etc.
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Medical/health insurance premiums paid
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Medical treatment/expenses
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Business/trade magazines, newspapers, memberships, business cards, etc
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Computer equipment, software, computer accessories, web hosting, etc.
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Postage, shipping
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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.