Deductible business expenses help entrepreneurs lower the costs of running a business. While mastectomy boutiques may be very different from other healthcare businesses, they do have one thing in common. They have to pay business taxes. Here are some of the most common general tax deductions available for small-business owners.
1 Vehicle Expenses
Gas, repairs, parking, and mileage add up. You can take advantage of the standard mileage rate or deduct your actual expenses. Make sure to keep detailed records and avoid mixing personal expenses with business ones.
2 Home Office
The home office tax deduction can be complex, but if you are working from home or have employees on a hybrid schedule, don’t let a few calculations stop you from taking this important deduction.
3 Professional Services
For professional consultants such as social media experts, accountants, or attorneys, the fees and overall expenses you pay for their services are deductible.
4 Salaries and Wages
Salaries and wages that are paid to part-time and full-time employees, including bonuses, education and training, meals, lodging, travel, per diem, and some employer-paid taxes, are eligible.
5 Office Supplies, Expenses, Furniture, and Equipment
Major supplies and office equipment may be deducted within one year of purchase. Always keep receipts of larger purchases and do not rely solely on credit card statements. They may not have enough information to explain the deduction to the IRS. The cost of postage, shipping, and delivery services are also deduction. There are various guidelines for depreciation, so look this one up or discuss it with your tax professional before claiming.
6 Client and Employee Entertainment
Make sure the entertainment occurs in a business setting and for business purposes. This is another place where a separate receipt from the restaurant or entertainment venue will come in handy.
7 Employee Benefits
The benefits that businesses like yours offer to employees do more than attract high-quality talent to your team. They also have tax benefits. Keep track of all contributions you make to your employees’ health plans, life insurance, pensions, profit-sharing, education reimbursement programs, and more. They’re all tax-deductible.
8 Computer Software
Computer software costs or subscriptions, used for business only, are deductible. You are also able write off the cost of your internet provider fees.
9 Business Location Rent
Rent is any amount you pay for the use of property you do not own. It’s deductible.
Keep track of your electricity, phone, and other utilities. If you’re claiming the home office deduction, your landline must be dedicated to your business.
11 Travel Expenses
If you travel to trade shows or for other professional business, you can take a small business deduction for all your expenses.
12 Machinery and Equipment Rental
You can deduct rental expenses in the year they occur with no depreciation.
13 Professional Education and Training
Yes, the courses and seminars that provide professionals with CMEs or CEUs are deductible. Check with your tax professional to ensure proper categorization.
14 Professional Licenses (Certifications) and Dues
Just like continuing education, professional licenses, certification, dues, and other costs are also deductible.
While this isn’t a complete list of deductions, it is a good start. Visit the IRS website for more information: Deducting Business Expenses