Five Small Business Tax Deductions Most Commonly Overlooked
Tax season will be here before we know it. While paying taxes is an obvious requirement, paying too much in taxes is not. There are many unique and specific deductions that can help lower your tax bill, when we look for them.
TaxRevo offers five small business tax deductions that are often overlooked:
- Healthcare Tax Credit – If you own a small business that pays for at least half of its employees’ healthcare coverage, you’re eligible for a tax credit of up to 35 percent of what you spend on health insurance premiums.
- Out of Town Business Travel Costs – Almost any travel you do for business is deductible on your taxes for at least some percentage. This includes business meals, travel costs (baggage fees), and hotel rooms for the duration of your trip. Keep those receipts!
- Home Office – Working out of a home office can provide you with many deductions on your taxes. Almost all business owners can take deductions for qualifying newly-acquired equipment and computer software and fees charged to the business account including ATM fees, credit card fees, and bank charges.
- Professional Fees and Classes – Any professional fees that you pay to continue in your career are deducible on your tax return, as well as much of the costs of attending classes, seminars, and training sessions.
- Charitable Non-Cash Contributions – If you don’t have the money to make a donation, you can always charge it. Tax deductions are usually taken when the purchase is made, not when the charge is paid off.