Beattie, Andrew. "FYI on ROI: A Guide to Calculating Return on Investment." Investopedia. https://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp.
5. Office Supplies & Furniture
As a small business owner, you know all too well how small expenses stack up. Paperclips, thumb tacks, staples, pens and pencils, paper, notebooks, post-its, printer cartridges—all these supplies and more are tax deductible for small business owners.
And save your receipts for the slightly bigger purchases, too. Got a nice chair or couch for your home office so clients can wait in comfort? Dished out cash for additional chairs, desks and electronics for those new employees you hired? These expenses can all come out of your taxes as well.
6. “Entertainment”
Depending on the type of small business you run, this might sound like a joke—or a blessing.
If part of running your business involves taking clients out to meals, theater events, concerts or clubs, baseball games, or anything like that, then don’t simply consider that money to be an acquisition cost. It’s possible to deduct up to half of those expenses for your business.
The IRS will want to see that these expenses are clearly for business purposes that are necessary, appropriate and helpful. But if that sounds like you, then make sure to mark these outings for future savings.
7. Interest Payments
Got a mortgage, small business loan or business credit card?
That’s right—those daily, weekly or monthly interest payments are also tax deductible for small businesses. These savings can be a huge boon to entrepreneurs who are growing their businesses with debt.
And what’s better than an already-itemized list of tax deductions for you to simply add onto your tax forms or send over to your accountant?
8. Business Taxes
Many small business owners aren’t aware of this, but your business taxes are actually tax deductible on their own. From federal, state and local taxes to income, real estate (including purchases and sales), employment (including social security and Medicaid payments), self-employment and sales taxes (including resale merchandise and depreciation costs), these expenses are well worth recording for those future savings.
The Bottom Line
The more you save on taxes, the more money you get to put right back into your small business. Use these tax deductions to take advantage of the ability the government gives you to manage a growing, thriving business.
Beattie, Andrew. "FYI on ROI: A Guide to Calculating Return on Investment." Investopedia. https://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp.