10 Items Entrepreneurs Forget to Claim on Their Taxes
Tax time is right around the corner and I wanted to remind you of some expenses that you can claim on your taxes.
You should always keep records of all your receipts for your company. There are numerous apps you can use to use for basic bookkeeping.
1. Home Office – If you work from home and have a dedicated space that you complete your work in, you may be able to deduct that space. You may also be able to deduct utilities for that space as well.
2. Travel – Every time you travel for business you can deduct your flight, gas, hotel, etc. at 100%, while meal and entertainment are up to 50% deductible.
3. Subscriptions – If you subscribe to your industry news in any form, you can deduct the monthly/annual cost. These subscriptions are needed for you to stay up to date on your field so that you can provide the current products and/or services to your customers.
4. Mileage or Car Maintenance. Now you can only deduct mileage OR car expenses. You cannot deduct both. If you don’t have a car dedicated to just your business, keep track of the miles you are driving to/from events, meetings, etc. At the same time keep track of the gas you are using and any other maintenance you spent money on and compare at the end of the year. This will help your CPA analysis and decide the amount that can be deducted from your taxes. There are also mileage apps you can use to help keep up with the distance.
5. Supplies – Pens, paper, baking supplies, supplies for a photoshoot (the photographer and the photographed), supplies for a meeting or event. Every time you pay for anything for your business doesn’t matter how small it is, you should be deducting. Remember those small purchases all start to add up.
6. Inventory - Entrepreneurs can now benefit from the new inventory rules. Instead of deducting inventory after it is sold, small retailers (with less than $25 million in sales) can now write off much of their inventory when it is purchased. Check out this article for more information on inventory.
7. Taxes, Fees and Fines – The zoning fees, business license, sales and use tax, annual taxes, etc all can be deducted.
8. Marketing – In order to network, you have to market yourself. Yes, there are free tools on social media you can use, but what about business cards, promo items, ads on social media, having influencers market your items, all tax-deductible.
9. Professionals Fees – Lawyers, CPA (Certified Public Accountant), etc all tax-deductible.
10. Continue Education – Any classes or courses you took to help with your knowledge of your field could be deducted.
Of course, tax laws change yearly but always consult with your CPA when filing your taxes. It may be cheaper to have a friend or a family member complete your taxes, but do you really want to take that chance with IRS? They are actually 3 years behind, so make sure you keep all of your receipts and documents for AT LEAST 7 years. Spend the extra money for a CPA. Remember you can write that off!
This post is only to make you aware of the deductions that may be available to you as a business owner