Top Tax Deductions for a Small Business
How much can you write off for a home office?
Deductions for a home office are based on the percentage of your home devoted to business use. You must figure out the percentage of your home devoted to your business activities in order to figure out how much you can write off.
What does it mean to deduct business expenses?
For a business expense to be deductible, it has to be both ordinary and necessary. Ordinary expenses are common in your trade or business while necessary expenses are helpful and appropriate for your business. Anything you use for your business that aren’t personal or capital expenses can be deducted as a business expense and you may potentially receive a tax refund.
What a business can write off?
Some deductions businesses can write off are car and truck expenses, payments to employees, contract labor, supplies, depreciation, rent on business property, utilities, taxes, insurance, repairs, commissions, travel, advertising, home office, legal and professional fees, meals and entertainment, rent on equipment, interest on business indebtedness, employee benefit programs, qualified retirement plans, and mortgage interest.
Which business expenses are tax deductible?
Business expenses that are tax deductible are car and truck expenses, payments to employees, contract labor, supplies, depreciation, rent on business property, utilities, taxes, insurance, repairs, commissions, travel, advertising, home office, legal and professional fees, meals and entertainment, rent on equipment, interest on business indebtedness, employee benefit programs, qualified retirement plans, and mortgage interest.