If you own a small business, you know firsthand how important it is to save money in order to stay afloat. Expenses like salaries, supplies, and rent can quickly add up and cause you unwanted stress. Small-business owners know that tax deductions are an excellent opportunity to save money on expenses. However, a lot of small-business owners often miss deductions that could save them money. In this article, we will discuss three ways that you can use to increase your tax deductions this coming tax season.
Three Tax Deductions You Can Take Advantage of Today
1. Salaries and Wages
First, salaries and wages are the most common expenses when it comes to owning a small business; they can also be the highest expense you have. The good news for you is the federal government allows you to use these salaries and wages for tax deductions. In addition, you can deduct commissions and bonuses you pay to your employees.
Likewise, you can deduct the salary and wages of your non-full-time employees or contract workers. If you are paying contract workers over $600 a year, then you can take advantage of using them as a tax deduction. In order to take advantage of this deduction, be sure to send all your contract workers a 1099 tax form.
You cannot run any business without buying supplies. For example, supplies can be small purchases like paper and pens for the office. Additionally, they can be large purchases like computers and workstations for your employees. No matter the size or expense, you can use all these purchases as tax deductions. It is important to note that you will need to save any receipt or invoice you may receive in order to take advantage of this tax deduction.
3. Rent and Insurance
Moving out of your home and into a proper office can be an exciting experience, but it will also bring the stress of having to pay rent and office insurance on your new property. To increase your tax deductions, the federal government allows you to deduct the rent you pay for your office space, as well as any insurance costs that may arise during your stay there.
Don’t let all the expenses of running a small business discourage you from following your passion. With the proper research and dedication, you can find dozens of opportunities to increase your tax deductions.
Here at Halon Tax, we provide the very best in software and CPAs to give you a comprehensive tax preparation plan. With a combination of technology and humans, we will fix your business books, find ways to increase your tax deductions, and draft your tax return for you. We can provide all these services without you ever having to leave your desk. In addition, we offer a multitude of other services with price ranges that will be sure to make you happy. Check out our website today and take the first step in achieving a headache-free tax experience.
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