6 Top Tax Write-Offs For Small Business Owners 1

6 Top Tax Write-Offs For Small Business Owners

Chances are, most if not all of your business expenses fit the requirements above. Being a small business owner, you probably find yourself needing to use your car to go to clients or business companions, travel to conferences, and attend trade shows. In that full case, it is possible to deduct automobile expenses that are related to business activities. Use your real expenditures: Deduct the business expenses related to your automobile (e.g. Gas, Car washes, Oil and wheel changes).

Use the standard mileage rate: Let’s say you had to use your car for 2,000 is for business-related activities, then you will need to increase that by the IRS standard mileage rate (which for 2014 was 56 cents). Traditional method: This method requires figuring out the percentage of your house used for business.

Certain insurance premiums for small business are tax-deductible so long as they’re normal and necessary; which fundamentally enables businesses to write off part or the entire amount of insurance premiums. Coverage for loss resulting from unpaid debts. Casualty and theft insurance. Group hospitalization and medical insurance for employees, including long-term care insurance.

Professional liability or malpractice insurance. Overhead insurance that covers very long periods of impairment caused by injury or sickness. Life insurance where you are or indirectly the beneficiary directly. Premiums paid on insurance to secure a loan for your business. Business interruption insurance, which replaces business income lost as a result of an event that interrupts your business’ functions.

  • Self-employed persons and independent companies are also required to pay the Business Tax
  • Buy the required equipment
  • Legal evidence
  • Westchase- 11041 Westheimer Rd, Houston, TX 77042

If you remove a loan to buy inventory or new equipment for your small business, you can deduct the eye that you paid on that loan through the season. Actually, most business-related interest payments can be deducted, whether it is for credit cards line of credit, car loans or perhaps a personal bank loan.

The most significant requirement is that it the money borrowed is totally for business, in which case the eye would certainly be a business expense. Loan for a vehicle you utilize for your business. For a working capital loan. Loan to expand your business. Money lent to buy inventory. Credit cards used for business purchases.

150,000 to refurbish your restaurant. You would be in a position to write from the interest amount that you paid in 2014 because the loan is for business purposes. Alternatively however, if you take out a loan to buy a car that can be used both for business and personal reasons, you shall not have the ability to deduct part of the interest payments on that loan.

Loans used for personal purposes (e.g. wedding or a vacation). Debts your business doesn’t owe. Interest on overdue fees. Loans used to pay fees. Money borrowed to invest in retirement plans. Fees for professional services like a lawyer or accountants are deductible, as long as these are directly related to your business.