Tax Deductions Every Small Business Owner Should Know About

Business owners have a lot on their plate, including taxes. Before completing your business taxes, it’s important to know that many deductibles exist that may apply to you. But how do you quickly learn the basics if you’re not a tax expert? Plan your taxes accordingly with the help of these tax deductions every small business owner should know. They may not all apply to you right now, but they’re all essential to understand.

Business Insurance

Businesses pay various insurance premiums, many of which are deductible. Among the deductible premiums are workers’ compensation, liability coverage, auto insurance, and more. Given the many insurance coverages you may need depending on your industry, work with your tax specialist to ensure you’re accounting for all the deductibles you’re owed. For instance, our team provides small business tax planning to help deliver accurate results every year.

Home Office Deductions

As a small business owner, you don’t have to be in a normal business office to earn work-related tax deductions. The simplified home office deduction allows for the deduction of five dollars per square foot of business-related space. This deduction allows you to account for a maximum of 300 square feet. However, remember that business-related is the key phrase here—working from home doesn’t automatically earn a business owner the deduction.

You can successfully earn the deduction if the space you’re only using the space as a home office and nothing else. In addition, you have to use it as your workspace regularly for it to count toward the home office deduction.

Rent Deductions

Don’t worry; the home office isn’t the only way your business space can earn you tax deductions. Another tax deduction every small business owner should know about pertains to rent. If you rent your business property, then you can have that rent deducted.

As you can see, you can earn deductions in many simple ways. Speak with a tax specialist today to ensure you successfully account for your specific taxes every year.