Top Tax Deductions for Small Business Owners

As a small business owner, keeping track of expenses and maximizing tax deductions is crucial to your bottom line. Properly utilizing tax deductions can significantly reduce your taxable income and increase your savings. Here are some of the top tax deductions you should be aware of:

Home Office Deduction: If you use part of your home exclusively for business, you can deduct expenses related to that portion of your home. This includes mortgage interest, insurance, utilities, repairs, and depreciation.

Business Vehicle Expenses: If you use your vehicle for business purposes, you can deduct the associated costs. You can choose between deducting actual expenses like gas, maintenance, and insurance, or using the IRS standard mileage rate.

Supplies and Equipment: Purchases of business supplies and equipment can be deducted. This includes office supplies, computers, printers, and furniture.

Employee Salaries and Benefits: Wages paid to employees are deductible, as are contributions to employee retirement plans and benefits such as health insurance.

Marketing and Advertising Costs: Expenses related to promoting your business, such as website development, online advertising, and business cards, are fully deductible.

Professional Services: Fees paid to accountants, lawyers, consultants, and other professionals are deductible as long as they are directly related to your business.

Insurance Premiums: Business insurance premiums, including liability, property, and workers' compensation insurance, are deductible.

Interest on Business Loans: If you’ve taken out a loan for your business, the interest paid on that loan is deductible.

Utilizing these tax deductions can have a major impact on your small business's financial health. Be sure to keep detailed records of all your expenses, and let Peggy's Family Tax Service assist you in maximizing your deductions to ensure you’re getting the most out of your tax return.