Do You Own a Small Business? Here’s What You Can Write Off

Anyone who runs a business knows just how important it is to pinch pennies when they can, and that applies to making tax deductions in order to keep tax costs low and more money in the business itself. Though you might know that deductions are popular for small businesses, taxes are generally confusing, and there are a lot of options and a lot of conflicting information out there.

You might need some extra tax assistance in Des Moines, IA to figure everything out, but in the meantime, you can read on for an introduction to some of the most commonly claimed deductions in the Schedule C section of Form 1040:

  • Salaries and wages: If you’re paying employees, you can usually deduct that cost, even if you’re offering things like bonuses or commissions. The only things you can’t deduct in this category are payments to sole proprietors, partners or LLC members.
  • Business supplies: You can fully deduct any items you use in your business. So, for example, if you’re operating a pizza parlor, anything from kitchen equipment to tomatoes could count as supplies for your business. You can also deduct any postage charges for sending products or mail on behalf of your business.
  • Rent: Though some small businesses are work-from-home setups, most rent a space for their business needs, whether it be a small office or a large warehouse. This is a fully deductible cost.
  • Repairs: If you have to do any ordinary repairs or maintenance on your business space, you can deduct those costs. If you do more substantial improvements on a property, perhaps one that you own, it can raise the value of the property and you can instead use a deduction for depreciation (a deduction related to buying property for businesses).
  • Travel: You might rack up some big bills traveling around on business, but thankfully the costs of lodging and transportation are deductible. Just make sure to save your receipts, because you will need to substantiate your travel to get the deduction.
  • Car and truck expenses: Many small business owners use a company van or truck, and you can deduct both the cost of operating that vehicle as well as mileage accumulated on the job. Keep in mind that you will need records proving you’ve used the vehicle for valid business reasons.
  • Advertising: Advertising may bring in more customers, but it can cost a lot to see results. That’s why it’s key to deduct any ordinary advertising costs your business incurs.

These are just a few of the deductions you can uncover for small businesses if you seek professional tax assistance in Des Moines, IA. Make sure you have the best tax team on your side to maximize your deductions. Accounting & Tax Professionals, PLC certainly fits the bill. We have served our community for over 20 years and have the expertise you need to file with confidence.

On top of small business tax services, Accounting & Tax Professionals, PLC offers tax resolution, notary services, investment consultation and tax audit representation. Call today to learn more!

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