The Top 21 Small Business Tax Deductions
This guest post was written by Joe Serrone, a Xero Silver Partner and Enrolled Agent & Tax Strategist at Polaris Tax & Accounting.
Tax deductions are critical in order to reduce your tax liability because they directly reduce taxable income. Many small business owners are unaware of the deductions that are available to them so we’ve laid out a comprehensive list of the most common deductions to consider this tax season.
The top 21 small business tax deductions
- Car and truck expenses
- Commissions and fees
- Contract labor
- Depreciation and section 179 expense deduction
- Employee benefit programs
- Legal and professional services
- Office expense
- Pension and profit-sharing plans
- Rent or lease
- Repairs and maintenance
- Taxes and licenses
- Wages Paid
- Home Office Business Deductions
Before considering any deductions though, it is important to remember that you need good business accounting & bookkeeping records in order to take advantage of every single business tax deduction available to you. If your books need some tender loving care, then consider working with someone that can provide catch-up & cleanup bookkeeping for your business.
Also, remember that you might not qualify for every single one of the deductions listed in this article. Therefore, consider consulting with your trusted advisor before claiming these deductions, since it is always important to have a professional evaluate your individual situation.
Source: Xero Blog