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)