Tax season comes by sooner than you think, so it’s best to be ready to calculate early. While most try to figure out how to avoid paying taxes, you might ask, is it possible?
You can’t evade taxes, especially when you own a business. Luckily, there are legal ways to pay less than usual.
Here’s a brief tax deduction cheat sheet to help you maximize your savings!
Stick to a Home Office
One way to significantly reduce your quarterly taxes as a startup is to stick to a home office. You can submit a claim for expenses related to its upkeep, including utilities, internet, repairs, etc.
Note that you should prove that the costs go towards the home office. It’s best to document and keep receipts related to it.
If you have a lease, you can get business rent deductions if you fall under the proper criteria.
Maximize Tax-Deductible Costs
Tax planning for small businesses is vital if you want to reduce the amount you put towards tax each year. You can do this by making the most of your deductibles when you file them. Here are a few things you can consider:
Travel Expenses
Business-related travel expenses include transportation, accommodation, rental, and the like. To apply these deductions, you should provide proof that the trip is necessary and located away from the primary location of the business.
Business Supplies
Equipment and tools needed to operate the business are deductible. It can include stationary, technology, office furniture, software or programs, subscriptions, and postage or packaging materials.
Company Meals
You can also get deductibles for the meals served to employees or clients. But note that you should meet specific conditions. You can get deductions when it falls under the following:
- Company party
- Personal business-related meals
- Meals with clients
You should also indicate the date, location, people involved, and total costs in your tax write-offs.
Advertising
Fees you incur to run your first batch of cards and campaigns are tax deductible. In some cases, it also includes fees to maintain and run your site, make further promotions, and provide sponsorships.
Legal Fees
If you hire legal practitioners to help with business operations, you can deduct the fees to pay them. For this, they have to be ordinary and necessary for the business.
Tax deductible legal fees include what you pay the attorney, court, or other instances related to bankruptcy, charges, and protecting business property.
Consider Independent Contractors
You can lower small business taxes by hiring independent contractors to work on specific jobs for your company. You have to be sure you can prove that they don’t work for you and only provide their services strictly for your business.
Gather Tax Credits
You can also make the most of tax credits to cover other business overhead expenses that don’t fall under the common deductibles. Each credit has different requirements and limits, so thoroughly read about them first.
Get the Most Savings With This Tax Deduction Cheat Sheet
This tax deduction cheat sheet provides small businesses with the tools to maximize their tax savings. From reducing business expenses to taking advantage of available deductions, small business owners can use this to get the most savings come tax time.
So what are you waiting for? Take advantage of this helpful resource and get the most savings today!
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