As a business owner, it’s important to be aware of all the tax deductions to which you’re entitled. There are many purchases you might make that qualify as tax-deductible expenses, but you may not be aware of them.
In this blog post, we will discuss some of the most common tax-deductible purchases that business owners make. We will also provide information on how to claim these deductions on your taxes. So if you’re looking for ways to reduce your taxable income, read on!
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Business Equipment
One of the most common tax-deductible purchases is business equipment. If you buy any tools or machinery for your business, these expenses can be deducted from your taxes. To claim a deduction for business equipment, you will need to provide documentation such as receipts and invoices.
Supplies and Materials
If you purchase materials for your business, such as paper or ink cartridges, these expenses can also be deducted from your taxes. You should keep track of all supplies purchased throughout the year so that they are not forgotten when filing time comes around.
If necessary, have receipts prepared in advance by an accountant before claiming them on your taxes.
Business Travel
If you travel for business purposes, the cost of your trip can be deducted from your taxes. This includes airfare, hotel costs, and other related expenses. Keep in mind that only 50% of your meal expenses while traveling for work are deductible, so it’s best to keep track of all receipts.
Employee Salaries and Wages
If you have employees, the salaries and wages you pay them can be deducted from your taxes. This includes both full-time and part-time employees. You will need to provide documentation such as W- forms to claim this deduction.
Business Insurance
If you purchase business insurance, such as liability or worker’s compensation insurance, the cost can be deducted from your taxes. This includes both premiums and deductibles paid by you for these types of policies.
Business Utilities
If you own a business that has office space, the rent or mortgage payments on this property are also tax-deductible expenses. In addition to rent or mortgage payments, the cost of utilities such as electricity and water for your office are also deductible.
Startup Costs
If you’re starting a new business, you may be able to deduct some of your startup costs from your taxes. This includes expenses such as advertising, legal fees, and accounting costs. Keep in mind that you will only be able to claim these deductions for the first year of your business.
As you can see, there are many tax-deductible purchases that business owners can make. By taking advantage of these deductions, you can reduce your taxable income and save money on your taxes.
You must consult with an accountant or tax professional before claiming any deductions to ensure that you’re doing so correctly.
At LUXA, we are passionate about helping business owners and CEOs save money through accurate accounting services both throughout the year and during tax time. If you are looking for ways to reduce your taxable income, contact our HR accountant team today!
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!