Tag: taxes

Business Expenses That Can Be deducted On Schedule C

The IRS indicates that a business expense is deductible if it is ordinary, necessary and directly related to running a business.

The following categories are included on the Schedule C, IRS form, used by sole proprietors to report their income:

  • Advertising
  • Car and truck expenses
  • Commissions and fees, contract labor
  • Depletion
  • Depreciation and section 179 expense deduction
  • Employee benefit programs
  • Insurance, interest
  • Legal and professional services
  • Office expense
  • Pension and profit-sharing plans
  • Rent or lease
  • Repairs and maintenance
  • Supplies
  • Taxes and licenses
  • Travel and meals
  • Utilities
  • Wages

Additionally, the following expenses fall under the 20 categories from Schedule C and are deductible:

  • Utility Expenses for Small Business Owners
  • Rent or Mortgage Payments
  • Home Office Costs
  • Website and Software Expenses
  • Business Licenses and Permits
  • Bank Fees and Interest Payments
  • Professional Fees and Business Services
  • Entertainment Expenses
  • Business Meals and Travel Expenses
  • Furniture, equipment and machinery deductions
  • Office Supply Expenses
  • Marketing and Advertising
  • Membership Fees
  • Auto and Vehicle Expenses for Business
  • Business and Health Insurance Premiums
  • Payroll
  • Local and State, Property, Payroll Taxes
  • Employee benefits
  • Training and education

Tax Write-offs for Small Businesses

You are working hard making your small business profitable. Expenses are piling and tax write-offs (i.e., deductions) are a helpful relief for your small business on tax day.

What Can A Small Business Write-off?

Your business expenses can translate into tax write-offs if they are considered essential to your business and common in your industry. Here’s a list of common deductions made by business owners in any given tax year:

  • Office space rent or used for business, including home offices
  • Related utilities; home-based business owner can deduct a percentage of their home utilities total
  • Office expenses, such as paper and printer ink
  • Equipment (from computers to specialized tools and machinery)
  • Internet and phone
  • Software
  • Payments to employees and independent contractors
  • Business related training and education (including subscriptions and publications)
  • Credit card processing fees, merchant and gateway fees
  • Advertising and marketing, website related expenses
  • Taxes (real estate taxes, payroll/self-employment taxes, etc.)
  • Business insurance and E&O insurance coverage
  • Local and state business license fees
  • Retirement plans and other benefits
  • Interest payments
  • Business travel, vehicle used
  • Business meals (50% can be deducted)

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