That time of the year many of us love to hate… Tax time. Entrepreneurs should always be aware of all the tax deductions they can take.
I have been in conversation with some entrepreneurs who start explaining about how they were “violated” by the IRS and when I start asking about the deductions they took, I just have to shake my head with pity.
Many entrepreneurs are neglecting many potential tax deductions. I have decided to give you a list of tax deductions you just might be overlooking.
Are you overlooking business meals?
Business meals with clients, investors or business partners are often deductible. I suggest saving the receipt and marking on it who attended and what the meeting was about.
Are you overlooking your cell phone?
If you use your cell phone for primarily business, you just may be able to write off part of your bill.
Are you overlooking your home office?
Most entrepreneurs are aware of the home office deduction but I thought I should add it here for any who are neglecting taking this major tax deduction. Just keep in mind that the area you claim as your home office must be used strictly as a home office.
Are you overlooking travel expenses?
Any time you book a flight, rental car or have any other travel expenses that are business related, they are deductible. It is important that you keep track of all these expenses and let your accountant work their magic.
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Are you overlooking vehicle deductions?
When you use your vehicle for business, you can deduct mileage. If your vehicle is used primarily for business, you may find you come out better taking the actual auto expenses. This can even include the interest you pay on your vehicle.
Most entrepreneurs have discovered that the mileage rate is great and just use the standard mileage tax deduction. But you do have to keep accurate logs so you are covered in case of an audit.
Are you overlooking charitable contributions?
When you donate money to charities such as:
- The American Heart Association
- The Salvation Army
- or any other organizations that will give you a receipt showing your donation
You can write these off on your tax bill.
No, flipping a $5 bill to the guitar player in the subway doesn’t count.
Are you overlooking start up costs?
Nearly all costs related to the start up of a business are tax deductible. This may include incorporation costs, legal fees, inspection fees, etc… Just make sure and keep all receipts.
Are you overlooking your mortgage?
Many entrepreneurs manage their business from their homes. This means that a percentage of your mortgage or rent can be deducted on your taxes. Your accountant will be able to explain what that percentage is.
Are you overlooking your accountant?
Yes, the fees your accountant charged you to do your taxes last year are deductible this year. Don’t neglect that. Actually, a good accountant will tell you that deduction.
Are you overlooking education?
Anything that is considered education toward growing you as an entrepreneur is deductible. If you attend a training seminar, buy training DVDs or even purchase a book that will help you become better in your business, you can probably deduct it as an educational resource.
Are you overlooking subscriptions?
Falling somewhat along the same lines as education, magazine subscriptions pertaining to your business such as trade magazines, the Wall Street Journal, Forbes, etc… are probably deductible. This will include on and offline subscriptions.
Are you overlooking your retirement?
Having a retirement fund is a tax deduction. Money you are putting away for your retirement can be a tax benefit now. Do not overlook this great tax write off.
Are you overlooking bank fees?
Many entrepreneurs do not realize they can deduct any fees associated with their business banking account. Any of those ATM fees may just be deductible.
Are you overlooking prior losses?
This is a deduction even highly trained accountants can miss. Net losses can be deducted from prior years. It is important that you review these with your accountant.
Are you overlooking The Expense Tracker?
You may be asking “What kind of deduction is the Expense Tracker Eric?”
Well, the cost of the Expense Tracker probably can be deducted as a business expense but more importantly, The Expense Tracker will help you keep track of all those expenses you had that can be deducted.
Several years ago, with a team of experts, we created this online suite of tools that allows you to keep track of all your finances using an app, by voice or online. It makes tax time much easier and helps you keep your budget under control. I am so sure you will be amazed with the Expense Tracker, you can try it for 7 days with no obligation.
Thank you for stopping by today. I hope this helps you realize the varied tax deductions you have available. Please leave any feedback or questions you may have below.
Also, will you share this with your social media friends? They will surely appreciate the information too.
Now take your business…