As the calendar turns, it won’t be long until annual taxes are due. Business owners have different categories they can claim as deductions. Here are 10 categories to remember when seeing your tax professional:
Employee Pay and Benefits
Everything you pay your employees in salary and most benefits are a tax benefit to you. Double check with your tax professional
Auto Maintenance and Mileage
This one can be tricky to navigate. You must keep good records, but you can claim the maintenance costs or the mileage deduction. Your tax professional can help you determine which way would be best for you.
Home Office
Home offices can be a deduction for you on your taxes. This includes costs for utilities, security, maintenance, cleaning, etc. Work with your tax professional to get the most for you.
Education
Seminars, symposiums and trade shows that are related to your business are deductions. Remember to include any trade magazine subscriptions, training CD’s/ DVD’s and all other training materials.
Advertising and Marketing
Include all areas where you pay for a service. Promotional costs are also included in the category.
Outside Help
Not just the office cleaning crew. Review the records of anyone you pay as part of your business that is not an employee. Hire your kids out to help stuff your mailing envelopes. They may be a deduction for your business.
Service Fees
Do you pay for processing credit card payments? Does your bank charge maintenance fees? Keep track, because it may mean a deduction for you.
Professional Fees
Do you have a lawyer? An accountant? A tax adviser? A bookkeeper? (If you don’t, you should call us.) All of those fees are deductible to you.
Licenses
Keep track of all licenses, fees and permits that you are required to operate your business. They are likely a deduction
Taxes
As strange as it may sound, taxes incurred while running your business, are a deduction. After all, they are a business expense.
Always consulate your financial professional as they have the training and knowledge to ensure you follow the appropriate tax law. Sound Accounts is always ready to help you with your business needs.