What is considered a tax write-off for your small business?

While we may not be tax accountants, we, too, look for ways to save money, and having tax write-offs is a great way to save your business some money. In that sprint, we’ve devised a list of some common tax write-offs that you might consider when preparing your taxes this season.

What is a tax write-off for your small business?

Your Home Office

If you run your business from your home, you can take a home office deduction. Whether you own or rent your workspace, you can take advantage of this deduction. Your workspace is considered an expense. However, a home office deduction can be complex and may result in an IRS audit. You need accurate measurements of your workspace when you submit it to the IRS. Besides the workspace deduction, you can also deduct mortgage interest, homeowners insurance, repairs, and, believe it or not, depreciation.

Phone and Internet Bills

You can use the business portion of your internet expenses, fax expenses, and phone expenses. However, keep in mind that you can only deduct expenses directly related to a business, so be sure to keep detailed use records. For example, one phone line should not be deducted from its monthly costs. This is because it likely includes personal and business calls.

Health and Wellness

You can deduct these if you are self-employed when it comes to health insurance premiums. You can deduct your long-term health care insurance premiums, dental insurance premiums, and overall health care insurance premiums. In addition, you can deduct health care insurance premiums for your spouse and any dependents under the age of 27 that you cover.

Entertainment

If you're attending a business conference, traveling for business, or entertaining a client, you can use a meal as a business tax write-off. This write-off allows 100% deduction of business-related meals, as long as the meal or a restaurant provides the beverage. Be sure to keep your receipts.

Traveling

For your tax accountant to consider travel write-off, the travel must take longer than the typical workday and include a rest period. Travel expenses include transportation to and from your destination, rental car costs, taxi costs, and meals. Be sure to maintain accurate records for all your travel expenses, and don't go crazy as the IRS is constantly scrutinizing these expenses.

Vehicles

If you use your car for business, it's a tax deduction. But you must keep good records of the purpose of the trip, date, and mileage accrued. The IRS has a standard mileage rate, and using this is the easiest way to claim this deduction. Car usage tax deductions include oil changes, repairs, depreciation, registration fees, and vehicle insurance costs.

Continuing Education

Education expenses to improve or maintain your current skills are considered a tax deduction. For example, if you are a real estate agent are often required to take continuing education courses.

Knowing all of your tax write-offs for your business is complicated. Implementing them is even more complicated. Make sure you are working with a qualified tax accountant who can help determine the right deductions for your business.

Next Step

Consult with your tax preparer to make sure you’re picking up every deduction you can to minimize your tax liability.