![]() Roofs leak, toilets break, and walls need to be repainted from time to time. Everything you spend on utility bills for your business-including electricity, phone, internet, water, heat and sewage-is fully deductible. Uncle Sam knows you have to keep the lights on to keep your business going (and vice versa). If you’ve bought a new laptop, smartphone or some software that you use for your small business during the year, you can write off the entire cost of those expenses, too. Those traditional office supplies are fully deductible! ![]() Okay, no matter what kind of business you run, you probably have a need to stock up on traditional office supplies-whether it’s printer ink, pens or Post-it Notes. Basically, anything you use to promote your business and bring in new customers (from social media ads to billboards) is 100% deductible. If you’ve been handing out more business cards to potential clients than candy to trick-or-treaters on Halloween, you’re in luck! You’ll be able to deduct the cost of printing those business cards on your tax return. The cost of renting a space for your business is fully deductible, whether it’s a storefront on a busy downtown street for your cupcake shop or an office space in a business complex for your travel agency. With rent always going up, it’s nice to get a break somewhere. 2īut it’s important to remember the IRS only allows you to claim this deduction if your home office is used exclusively for business purposes on a regular basis. If your home office doubles as a guest room for your mom when she’s in town, that’s not going to fly. The simplified version of this deduction allows small-business owners to deduct $5 for every square foot of your home office, up to a maximum of 300 square feet. Have you turned a spare room in your house or apartment into a home office space? Good news! That means you’ll probably be able to deduct expenses for the business use of your home, which include mortgage interest, insurance, utilities, repairs and depreciation. You’ll want to reach out to a tax pro to see if you’re eligible for this pass-through entity deduction. Once your income exceeds $157,500 for single filers or $315,000 for pass-through business owners who file a joint return, this deduction begins to phase out. The biggest obstacle is the income limit that applies to some high-income business owners such as lawyers, doctors and consultants. Woo-hoo!īasically, if you own a small business and it generates $100,000 in profit in 2019, you can deduct $20,000 before ordinary income tax rates are applied.īe warned: There are a few limits, however, that could prevent you from claiming this deduction. Under the new tax law, most small businesses (sole proprietorships, LLCs, S corporations and partnerships) will be able to deduct 20% of their income on their taxes. The 2018 tax reform law changed how deductions work for most taxpayers-including small-business owners. While certain expenses are specific to what kind of business you run, here are some of the most common tax deductions available for most small-business owners: 1. But getting a haircut? You’re going to have a hard time proving your new hairdo is essential to keeping your art business alive. So, if you’re an artist, you need paint and brushes and canvases to create your artwork. In other words, if you need certain items or services to survive as a business, you can write off those expenses on your tax return. Got small business tax questions? RamseyTrusted tax pros are an extension of your business. Instead, they leave small-business owners with this general rule of thumb for what business expenses you can write off your taxes: If something is “ordinary and necessary” to running your business, then it’s a tax-deductible expense. Unfortunately, the IRS doesn’t have a master list of small-business tax deductions for each and every profession there is. The last thing you want to do is miss out on deductions that could save you hundreds or thousands of dollars on your taxes or, worse, make some mistakes that leave you in hot water with the IRS.īut don’t worry! We can help you get a better grasp on what you can write off your tax return. You’re looking for ways to improve your product or service, what you can do to improve your customer experience, and how you can cut costs and increase revenue.īut not paying attention to your taxes could cost you big time-especially if you’re not sure which small-business tax deductions you’re eligible for. ![]() We know it.Īnd, quite frankly, you probably feel like you have much bigger fish to fry. We don’t have to convince you that taxes are complicated-especially for small-business owners.
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