When you are running a business, amongst a myriad of other business goals, you are seeking at the end of the day to make the most profit possible. Finding ways to increase your profits can be a challenge, but the two basic strategies are to either make more revenue, or to cut expenses. When cutting expenses, the best way to do so is by taking advantage of all the tax breaks and advantages that business owners get, particularly deductions of business expenses. Here are three tax deductible business expenses that your business should be deducting every tax season.
The first business expense that is tax deductible is your office supplies. As long as you have a physical office space that you or other employees use, and you supply office supply equipment to yourself and your employees, then those costs can be deducted from your taxes. As a necessary business expense that must be spent to run your business, these office supplies are completely tax deductible. This includes things like heavier machinery like printers or computers and should be used to make sure that the money you spend on operating your business is not taxed.
If you travel a lot for business or you pay for your employees travel expenses related to business, then you should be deducting these costs as well from your income. This includes things like flights, ride shares, and hotel expenses, as well as food expenses while traveling, but more than just deducting these travel expenses, there may be other ways for your business to save. A corporate apartment can be cheaper than a hotel for your business. If you travel a lot to a specific destination, then having an apartment there for you and employees to use when traveling can save hundreds of dollars every month, and it is still tax deductible.
The final business expense that is tax deductible is the rent that you use for office space or other property that your business owns and utilizes for business purposes. This is especially huge if you are spending a lot in rent every month for a larger office space, or you work in real estate investment. Make sure that you are discussing with your accountant what specifically is and isn’t deductible when it comes to your rent, as the rules can vary.
Business expenses are no fun, but at least they are tax deductible. While not every expense can be deducted, knowing which ones can be is crucial to keeping your business profitable. Make sure that you are taking advantage of these three deductions at your business.
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