Millions of Americans operate small businesses, the cornerstone of the American economy. More than 70 percent of all new jobs are created by such businesses, some that grow and evolve into internationally recognized global corporations. Microsoft, Apple and Dell are examples of such companies.
Your business is not there yet which means that you may need some help with tax relief moving forward. You may not be looking for a government hand out, but you are looking for some assistance that can reduce your overall tax burden.
Let’s examine 10 ways that you can save yourself money, by considering the following available deductions on IRS Schedule C:
1. Insurance — Business insurance costs can include so many things including the automobiles you drive, the insurance on building content, travel insurance, health and dental, and any other insurance matters. Even if you work just for yourself, some of your personal insurance may be tax deductible. When in doubt, consult with a tax preparer.
2. Advertising — All forms of advertising are deductible and these expenses include newspaper, magazine, radio, television and online advertising. The cost you pay to publicize your website on another website is also deductible.
3. Rent — You pay rent each month for your space. Deduct the cost of office space and include related expenditures such as common area costs, landscaping, parking lot maintenance and utilities that are added to this bill. For freelancers, you are allowed to deduct your office space provided that this space alone is used as an office.
4. Losses — Did your business suffer a loss this past year due to fire, theft or other damage? Your casualty losses are deductible and should be listed on your tax return.
5. Supplies — Various office expenses including the supplies you buy to run your business are tax deductible. This can include your computer and related hardware, software programs, your Internet connection, phone service, paper supplies and much more. If you are a freelancer, keep track of what you buy for your business.
6. Fees — Your accountant and your attorney provide essential business services that ensure your enterprise stays afloat and within the bounds of the law. Such professional fees are deductible, with receipts to prove your purchases.
7. Taxes — So many taxes, so little time! Small businesses must pay a host of taxes ranging from state sales tax to use fees. Also, you may be required to pay for a business license and make employee payroll taxes. Make sure that you are sending your taxes in on a regular basis. Freelancers are still required to pay taxes and generally do so by paying estimated taxes every quarter.
8. Subscriptions — Many businesses pay for subscriptions including for newspapers, magazines, financial reports, stock services, you name it. These subscriptions are tax deductible and can also include the association dues that you pay for membership.
9. Interest — Paying interest on your debt or other expenses may be tax deductible. This includes loans that you have taken out for your business, lines of credit, term loans and the like. You must be legally liable for the debt and you must have a bonafide debtor-creditor relationship. Loans from family members may qualify, provided that these are in writing with terms outlined. Get yourself certified in 70-643 Certification. There is 100% passing guarantee. Buy 70-410 Exam training material to get better exam results using our quality material.
10. Uncollectibles — On occasion, you may find it impossible to collect from a client what is owed to you. Beyond taking legal action, you can also simply deduct that loss. According to IRS Topic 453, these losses include your loans to clients or suppliers, credit sales to consumers and business loan guarantees.
Additional tax relief can be had in other areas including your payment of local property taxes, the fees you pay an employment company to find you a new employee and certain excise taxes. Work with your accountant to find and take those deductions that are right for your business and consult with a tax attorney if contesting your property taxes is also something you must do.
Frank Roberts writes for Swope, Rodante P.A., a Tampa law firm specializing in cases involving traumatic brain injury, wrongful death, automobile collision, and catastrophic injury.