The end of the year is fast approaching, and with it comes several tax deductions for small business owners. These tax deductions can help you save money on your taxes this year and in future years as well.
In this blog post, we will explore some common ways that tax deductions benefit your business. We’ll also discuss how these benefits differ from one type of company to another!
Small Business Tax Deductions
There are several small business tax deductions that you can take advantage of before the end of the year. Some common examples include:
- Advertising and marketing expenses
- Employee benefits
- Home office deductions
- Interest payments on business loans
- Professional dues and fees
- Self-employment taxes
- Taxes and license fees
- Office supplies
- Travel costs
- Business losses from previous years
- Equipment purchases
Each of these deductions can help you save money on your taxes. Advertising and marketing expenses, for example, can be deducted in full as long as they are related to your business.
Office supplies can also be written off in their entirety, and travel costs may be deductible if they are associated with business activities.
You can also deduct any business losses you may have incurred in previous years. And, finally, equipment purchases can often be written off in full as long as they are used for business purposes.
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How Tax Deductions Benefit Your Business
The benefits of tax deductions vary depending on the type of company you own. For example, sole proprietorships and partnerships can usually write off any business expenses they have.
However, with corporations, the situation is more complicated. Many of these small business tax deductions are only available to C-corporations or S-Corps, which are subcategories of corporations that meet certain requirements set by the IRS.
For example, C-Corp owners can deduct most equipment purchases in their entirety, while S-Corp owners can only deduct a portion of these purchases.
There are also differences in the way that deductions are handled for different types of businesses. Retail businesses, for example, may be able to write off their advertising and marketing expenses in full, while service businesses typically cannot.
Claiming the tax deductions for which you are eligible can help you save money on your taxes this year and in future years. By taking advantage of these deductions, you can put more money back into your business and help it grow!
Finding the Best Tax Deductions for Your Business
As a small business owner, tax time is oftentimes overwhelming. Fortunately, you don’t have to do it alone! At LUXA, we work with small and mid-sized business owners to ensure that they claim the tax deductions they are entitled to.
Whether this is your first official year in business or your tenth, working with a tax professional is the best way to maximize the deductions you qualify for and get the most money back on your tax return.
LUXA Enterprises specializes in HR services, outsource accounting, bookkeeping, and payroll services. We match up with ideal candidates for services by allowing small to midsize businesses to increase focus on their growth through outsourcing. If you want to know how we can help you, contact us today!
REQUEST ONLINE PRESENTATION
We’ll demonstrate how you can save money while improving your efficiency and accuracy when you outsource your back office services to TEAM LUXA.
Let Us Present A Plan →
Call TEAM LUXA today at (918) 928-7288 to learn more about why outsourcing is right for you!