You can, which is good news. In fact, you might not even know about all the tax deductions you can take for your small business. Even though it’s important for everyone to pay taxes, taking steps to write off everything you can helps your budget and business grow in a big way.
Read on for the latest tax breaks that can help you become a successful business owner.
Marketing and Advertising
Employees and independent contractors can claim these tax breaks for their small businesses right now. Because the list is so long, this is one of the first places you should look for deductions.
Some marketing and advertising costs that you can deduct are:
- Business logo design
- Printing business cards and brochures
- Website creation and design
- Social media marketing campaigns
- Ad space online and in print
Remember that you can’t write off any costs you use to promote an event. The same is true for giving money to political campaigns in the name of your business.
Business Gifts and Meals
If you just booked the Christmas party for your office, there’s good news: you can deduct the full cost of the food. For business meals that aren’t office parties, you can write off 50% of the cost of food and drinks.
These events have to “qualify,” which means they have to be important to your business. Meeting with a possible client to talk about your services is an example of this.
If you only use your car for business, you can write off the whole cost of running it. One example would be if you own a small cleaning business and only use your car to drive between clients’ homes.
If you use your car for both business and pleasure, you can only deduct the costs that are related to your business. This would include the price of gas to get to a client’s office.
Employees and Contractors
One of the benefits of owning a business is that you can write off employee salaries, bonuses, commissions, and other benefits.
You can also deduct these costs if you hire a freelancer or contractor to do work for you. Just give out a 1099-MISC form if the services cost more than $600 in a year.
Read More: 7 Steps for Starting a Business From Home
Make These Small Business Tax Deductions Today
By taking advantage of these tax breaks for small businesses, you can make your budget easier and have more money to put back into your business.
Just keep track of all the money you spend and keep your receipts. This will make sure you have everything you need when it’s time to file your taxes.