When you own and run a small business, you may be missing out on some deductions if you aren’t aware of the costs you can deduct. It is important to know what deductions you can make so that you can plan for them by saving receipts and keeping the records needed to deduct legally. It can be overwhelming when you are trying to gather receipts at the last minute. That’s why Mecham Dicus & Company is here to talk about some deductions you should be planning for.
Car, Truck, Van & Motorcycle Vehicle Expenses when Used for Business
If you use a vehicle to keep your small business afloat, you can deduct a portion of it at tax time. This may include vehicle leases, the depreciation of the vehicle, gas, repairs, tires and other expenses that start to slowly accrue with a vehicle.
Home Office Tax Deduction
When you use a portion of your home for your small business, you can deduct it from your taxes. There are some regulations that must be met to do this though. If you use an area in your home solely and exclusively for your business it is eligible, and if your home is your primary place of business. When you qualify for this deduction, you can deduct a portion of your utility bill and other household expenses. However, be careful, because you need to be able to verify this one.
Are Travel Expenses Tax Deductible?
There are several small businesses that have to travel a great deal to keep their business afloat. If this is the case, you can deduct your travel expenses from your taxes. This doesn’t mean that you should schedule some grand vacation for your family with a little bit of business on the side. The travel truly needs to be for business or you can get in trouble. Deductible travel expenses may include the following:
– Plane, bus and train tickets
– Cab fares
– Lodging and meals
– Laundry services/dry cleaning services
– & more
What Education Expenses are Tax Deductible?
If you are taking classes or furthering your education and it has a direct impact on your small business, you can deduct the cost of this education. This may include classes, books, conferences, seminars and more. If the education you are getting had a direct impact on your business, it is eligible for deduction.
Are Legal Fees Tax Deductible?
When you rely on the help of a bookkeeper, accountant, lawyer or tax preparer for your business, the fees that you accrue can be deductible. Even any accounting software that you use for your business is eligible for deduction.
Small Business Tax Preparation, Filing, Planning, Bookkeeping & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you own and run a small business, there are so many things that you have to juggle on your own to determine your success. This is why Mecham Dicus & Company wants you to call on us to handle your bookkeeping and tax services. That allows you to focus your attention to other areas that need your attention more. You can count on us! Call us today.