As a small business owner you have a lot on your mind and taxes often seem like a burden that’s only there to hurt you. If you want to keep more of your hard-earned money in your pocket, you need to educate yourself about small business tax deductions. A lot of business expenses can actually be written of as tax deductions. Are you using these four forgotten tax deductions?
Advertising is crucial for small businesses; however, it can be very expensive. Luckily, advertising costs are tax deductible. In order to deduct them you must keep track of your advertising costs.
Ads on these platforms are all tax deductible.
- Social Media ads (Facebook, Instagram etc.)
- Google Adsense
- Newspapers and Magazines
- Television and Radio
- Influencer campaigns
The cost of running the ad isn’t the only deductible expense. These 20 Common Advertising Expenses are also tax deductible.
If you’re a Mazuma client the best way to keep track of your advertising expenses is to upload your invoices, bills and receipts. We’ll keep track of them and make sure you get tax deductions for them.
You probably claimed new assets or purchases as tax deductions, but did you know you can continue to claim them as asset depreciation deductions? According to the IRS, “Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property.”
It’s best to meet with your accountant to discuss which of your assets qualify because the list changes from year to year. A Certified Public Accountant will be up to date on what you can deduct and can help you receive a larger return.
Are you taking a client out for lunch or grabbing take out because your team is working late again? You can deduct 50% of the cost of the meal when it is specifically business related.
The key to getting use out of this deduction is to keep track of your expenses. You should do more than just save the receipt for business meals. Track the meal, who it was with and why it was business related in a journal; that way if you ever need to prove that it qualifies you have the records to back it up.
Some small business owners need training to help them improve or grow their businesses. Going to conferences, taking courses or exams can count as tax deductions. The IRS has two requirements in order to qualify.
- The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
- The education maintains or improves skills needed in your present work.
Education that is required for your current position or qualifies you for a new trade or business cannot be counted as deductible. Because you are self-employed you must make sure that the education is bettering your business in order to have it qualify.
If you want to learn more about what you can deduct as a small business owner, check out this post on 5 (more) Commonly Missed Small Business Tax Deductions.