The end of the year is creeping up on us, and that means yet another dreaded tax season.
Did you know that there are many tax deductions available to business owners? If you are looking to save money on next year's tax bill, it is important to understand what these deductions mean for you individually. A simple conversation with a tax expert could save you hundreds or even thousands of potential tax dollars!
In this blog post, we will discuss some of the most common tax deductions and how you can take advantage of them. Don't miss out on potential savings - read on for more information!
Tax Deductions You Can Look Into
As a business owner, you can lose a major chunk of your money each year through taxes alone. Although the cost of doing business can be expensive, it doesn't have to break the bank.
If you weren't already taking advantage of the many tax breaks available to you, here's a chance to take a look at some you maybe weren't aware of.
One common tax deduction is accounting fees - the IRS allows you to deduct these fees from your taxes if they were spent on behalf of the company, in order for other businesses that don't spend this much time keeping track of numbers not to have an unfair advantage.
Another way to save money on your taxes would be your advertising expenses. Any category of businesses use advertising for their own campaigns, and as many definitely know by now in this day and age, it can be a very costly affair to get your company's name out there. You don't have to be a large business to do so.
Even small businesses have applied this strategy to their daily operations, and it has proven to make a beneficial change to any campaign! Believe us when we say considering making tax deductions from an expense you will already surely have is a smart move.
You may be surprised to learn that one of the most overlooked tax breaks for businesses is amortization. By paying off your debt in equal installments, you are able to reduce what taxable earnings come into a company and save yourself money on taxes.
The government may consider it as though they are receiving less interest, which lowers how much money needs to be paid out and saves companies some cash too! Taking advantage of this opportunity when settling your own debts could majorly pay off the next time your tax bill comes in the mail.
The IRS might also consider giving you a tax break for all of the money that goes into your bank visits and fees. Keeping track of the money you spend at your bank, and all fees that come with it like international transaction charges or overdraft fees on a checking account could save some serious cash! You can save your hard-earned money if you only put in the effort, so be sure to check if this would apply in future filings!
Repairs and Maintenance
It is expensive to run a successful enterprise which requires frequent investments into essentials such as heating or cooling systems.
Imagine the satisfaction of knowing that by keeping track of the next time your office AC breaks down in the middle of the summer, you could save money in taxes.
The cost of repairs and maintenance are inescapable fees that come with any business; which is why sometimes, the IRS is willing to give back some funds from these repairs and maintenance fees because it's an expense any company must face - big or small!
When you think about it, office supplies and equipment are a necessary expense for any business. But what if we told you that by counting your spending on these items alone could save you some serious cash next time there's an upcoming purchase?
The expenses your company makes on office supplies and equipment, including any repair, could double up as yet another tax deduction for your next tax bill. These expenses can be costly, but with the right effort, you could save yourself some money!
Businesses should consider the value of employee education and training. It's a great way to find qualified workers, but it can also be costly for your company in terms of resources spent on these programs as well as their success rates afterward. Determining this information will help shape future tax deductions based on different calculations regarding charges made during employment, and possibly regain any lost income as well as achieve a higher rate of education and success within your workspace.
According to the Internal Revenue Service (IRS), “Ordinary and necessary expenses paid for the cost of the education and training of your employees are deductible.” However, if the expenses are for training that helps the individual to meet minimum requirements of their present trade or business or qualify an individual for a new trade or business, they are not deductible.
Losses Due to Theft
Imagine the worst thing that has happened in your work life. You lose a valuable asset, and it's hard to get back on track with everything going forward - especially when you're worried about paying taxes!
The IRS knows that life happens, and sometimes business buildings aren't the most secure places. The idea of losing something important to theft or any other form can be daunting at first - especially if what was taken were valuable assets! But luckily for all of us who find ourselves unfortunate enough to play second fiddle (sometimes literally) at our jobs, there are some great benefits outside tax time regarding theft or other employee misdeeds which can help make up lost ground financially.
There is always hope for getting your lost money back through deduction expenses related to any losses caused by theft!
Prizes for Contests
Whether it's a team-building exercise or party, any event is an opportunity to have fun with your co-workers. But even though they're enjoyable in moderation (and pretty inexpensive), these sorts of things can quickly add up if you don't watch out!
Luckily there are tax deductions available for contest prizes and expenses - as they are technically part of a work schedule at times! Don't be afraid to have fun because even in having fun, you can find business to conduct!
No one likes to pay taxes, but they are a necessary part of life. That's why it's so important to look for any potential tax deductions you can take advantage of in order to reduce your financial burden.
Fortunately, tax deductions come in all kinds of forms, so even if you don't think you have anything to claim, it's worth putting in some extra time to do your research.
Who knows – you might be surprised at how much money you save by taking the time to file a simple deduction!
Have you ever taken advantage of any unusual or unexpected tax deductions? Let us know in the comments.
If you find yourself confused about all the tax laws and regulations, we're more than happy to offer advice on non-controversy topics.
Just give us a call.