As tax season approaches, many small business owners are leaving money on the table by overlooking valuable deductions. Staying informed about tax law changes and exploring lesser-known breaks can significantly reduce your taxable income. Here are some often-overlooked deductions to help you keep more of your hard-earned money:
- Home Office Deduction
- If you operate your business from a dedicated space in your home, you may qualify for the home office deduction. This includes expenses like utilities, insurance, and even a portion of your rent or mortgage.
- Startup Costs
- If you launched your business recently, you can deduct up to $5,000 in startup expenses. This includes market research, legal fees, and initial advertising costs.
- Vehicle Expenses
- Business use of your personal vehicle is deductible. You can choose between the standard mileage rate or actual vehicle expenses (gas, maintenance, insurance, etc.). Ensure you keep a detailed log of business-related trips.
- Continuing Education and Training
- Courses, certifications, and seminars related to your business or profession are fully deductible. These investments also enhance your business’s growth.
- Section 179 Deduction
- This allows you to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year, providing immediate savings.
Many deductions are often overlooked. Ensure that you’re leveraging all opportunities by keeping detailed documentation for all business-related expenses, and working with your CPA to review your records for potential deductions.
If you have questions about maximizing your deductions, leave a comment below or feel free to contact me directly. I’m happy to help!
