![]() By taking advantage of these, you can reduce your tax liability and save money. There are many tax deductions available to small business owners. You can deduct the cost of insurance premiums for your business, including liability insurance, property insurance, E&O insurance, health insurance, vehicle insurance, worker's compensation and other types of insurance that are necessary for your business. Make sure your accountant knows the rules for Bonus depreciation and for Section 179 depreciation, because these tax laws can literally save you millions of dollars in taxes. This deduction allows you to recover the cost of the asset over time. Did you know that any asset in your business over $2,500 cannot be expensed? They have to be depreciated. ![]() If you own assets that are used in your business, such as machinery or equipment, you can deduct a portion of their value each year through depreciation. Consult your tax strategist, and be sure to keep records of your payments and any related expenses. Your business would pay you rent, and it is a business expense to the business and tax-free to you. As long as your primary place of business is not your personal residence, you can use your house for 14 days or less per year for business events or meetings. There is also a tax strategy called the Augusta Rule, where your business can pay you rent, personally, for the use of your house. Rent and leases apply to vehicles, as well. Rent Or Lease Paymentsĭo you have to pay rent, or perhaps you lease your business space? Know that you can deduct your rent or lease payments. Just keep in mind that the fees must be directly related to your business and not personal expenses. If your accountant isn’t bringing tax savings ideas to you, it could be because they cannot afford the continuing education to keep up with the ever-changing tax laws. Don't cheap out when it comes to your attorneys and tax strategists they can be worth their weight in gold. How about all those professional fees paid to lawyers, accountants and other consultants who help you run your business? Those, too, are deductible as business expenses. This includes things like the cost of your photographer/videographer, editing expenses, equipment, photoshoot props, cost to rent out cool spaces and more. There is a lot of advertising and marketing done these days on social media the cost to produce and edit these photos and videos is also a business expense. You can deduct those expenses, including website design, ad costs and promotional items. Advertising And MarketingĪs a small business owner, you likely have quite a few marketing expenses. Be sure to keep receipts and records of your purchases to prove your expenses. ![]() Some of my favorite office supplies are plants, flowers, artwork, decorations, colorful markers, lots of journals and notepads, charging cables, ring lights, and more. You can deduct the cost of office supplies and equipment, including computers, printers and other office supplies. Keep in mind that the expenses must be directly related to your business and not include personal expenses. Travel for business purposes? As long as more than half of your domestic travel days are spent taking part in business-related activities, you can deduct expenses such as airfare, lodging, meals and transportation costs.
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