There are over 32 million small businesses in the United States alone. Some are more established than others but they all share a common goal: profit as much as possible. In order to make money, a business has to save money. With tax season coming up in a few short months, it is crucial that small businesses are aware of all their opportunities for tax deductions. Even the slightest IRS tax breaks can produce significant savings for small businesses; it may even be the difference between success and failure for some.
The next time you pick up the dry cleaning for your work uniform, make sure to save the receipt. If you are required to wear a specific uniform for work, particularly one that is unfitting to wear outside of the workplace, it may be tax deductible. This can include a shirt with a company logo, work boots, or protective clothing. The cost of the clothing and its upkeep can be included in the miscellaneous itemized deductions section of your tax form.
It is nearly impossible to conduct business operations without a cell phone. If you are using your personal cell phone for business calls, you can calculate the percentage of work-related use and deduct that from your taxes. If you have a separate cell phone or number used solely for business, that can be deducted as well.
Whether your small business operates in an office or at home, office supplies are necessary for your business to run. This includes, but is not limited to, ink cartridges, pens, office furniture, and Wi-Fi adapters. While each of these purchases may seem infinitesimal on their own, when added together they may contribute to a significant portion of monthly business expenses.
Holiday events, birthday celebrations or just taking your employees out for lunch is a great way to show appreciation and boost office morale. Depending on if the event meets certain criteria, it may be eligible for a 50% or 100% tax deduction.
What’s a party without presents? Gift tax deductions are a bit more complicated of a category; gifts cards, bonuses and client presents may be eligible for a percentage of tax reduction.
Promoting your product through ads of any kind is vital to a businesses’ survival. Publishing in a magazine, sponsoring a billboard or web marketing is all considered types of advertising expenses.
Determining every tax deduction for a small business can be tricky. At Empire Tax Professionals, we appreciate the importance of saving every penny, especially for a small business. Contact us at 97-77 Queens Blvd Suite 1102 Rego Park NY 11374, this tax season and we will make sure your small business is as profitable as possible.