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What Are Tax Write-Off’s For A Small Business Owner

In the past, I have covered seven tax write off’s for business and basic over of small business tax write-offs. Being your boss is a lot of work, and one of the hats you will wear is being your accountant and CPA and having your bookkeeping method to track all expenses and income and be prepared for taxes. One of the main things most small business owners do not remember is documenting their tax write-offs for the year. 

Being your boss is a lot of work, and one of the hats you will wear is being your accountant and CPA and having your bookkeeping method to track all expenses and income and be prepared for taxes. One of the main things most small business owners do not remember is documenting their tax write-offs for the year. 

What Counts As A Business Write-Off: 

A write-off is a business expense that you can deduct for tax purposes. Business owners use this to lower the tax bill with the IRS or breakeven during tax season.

Where Form Do These Write-Offs Happen:

You have two options: a small business owner can claim the standard deduction on their personal returns or write-off on your business Schedule C.

Here is a list of the most common Tax Write-Offs: 

Startup cost: you can do up to $5000 per calendar year for the small business owner.

Meals: You can be deducted up to 50% of your meals you take on your own or with clients/staffing.

Personal Appearance: Yes, the guidelines regarding this are stringent, but your appearance is part of your business- especially if you are doing speaking gigs, on billboards, and much more. 

Home Office: the space that you work in. My CPA wanted to know the dimensions of my taxes, and you can calculate the total.

Office Supplies: think your pens, paper, printer, laptop, camera, mics, and more. 

Professional Development: working with a consultant or doing a group accelerator to help scale your business? These fees can be written-off.

Cell: everyone uses their phone to place calls, text, or social media. All tools needed to run your business. 

Client or Employee Entertainment: Sending clients gifts or taking your team members out for dinner, keep the receipt so it can be deducted. 

Freelance labor: work you outsource to others to complete

Office furniture: your desk, chair, bookshelf, and more

Computer software: any software needed to run your business. 

Utilities: lights and water bill used in your home or office building.

Bank Fee’s: fees your account occurs to operate 

Payment Gateway Fee: think about the fees that they charge you to process payments on their end. 

Education: books, courses, classes, and anything that consider for learning purposes.

Advertising and Marketing: social media advertising, email marketing, fliers, billboards, radio, and many other avenues.

Licensing To Protect Your Business: Items related to the protection of intellectual property can be deductible. Some will need to be over time vs. a one-time deduction.

Charitable Giving: Giving to local charities, nonprofits, or churches. 

Regardless, if you’re filing your taxes quarterly or yearly, it’s imperative to keep a detailed record of everything. Having bookkeeping software that is linked to your systems will help with this. On my Monday management days, I go through all those details and making sure things are correct. Finally, make sure you chat with a tax professional regarding doing what is best for your business. Doing taxes as a small business owner can be very different than doing them yourself. 

Photo by Toa Heftiba on Unsplash

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