Surprising Tax Deductions For You!

DeductionsThis month we’re giving you important info on how to be as tax ready as possible. Last week we started by giving you the information you need to decide how which entity is best for you. Regardless of whether you are a sole proprietor or the owner of a corporation, you must file taxes. If you’re on the ball and you’ve already filed your 2016 taxes, we want to make sure you’re even more prepared for next year. And if you haven’t filed for 2016 yet, we’re going to make sure you’re not missing anything!

Most people have the typical deductions down. Business owners can deduct their mileage and other auto expenses, office rental, employee wages and contract labor. But did you know there is a plethora of other things that you may be able to deduct on your taxes? Keep reading to learn about some surprising tax déductions.

Advertising- Any money spent on branding, business cards, signage, advertisements in newspapers or magazines, etc. are fully deductible. This even includes the little candies you give away at your trade show booth.

Gym memberships & Pools – The costs you incur to exercise can be deductible if your doctor approves them as necessary remedies to protect your life. Furthermore, your pool can be deductible if your doctor orders hydrotherapy for your health condition or if you use it to demonstrate or test products.

Charitable Contributions – Any out of pocket cash that you give to the Salvation Army and/or any donated merchandise, food, stocks or dividend that you give can be deducted at full value—without paying capital gains taxes.

Home Office – Even if you work from home, you may still be able to deduct the cost of your office. If you have a space completely dedicated to work, you can deduct a portion of your monthly rent or mortgage as a home office expense. Simply calculate the percentage of square footage being used for business purposes and deduct that percentage off of your rent or mortgage.

Travel – You may already know that you can deduct mileage or airplane fare for business related travel but did you know that you can also deduct all meals, parking and tolls associated with any business-related travel? And don’t forget about in-room Wi-Fi fees! Be sure and keep thorough records of all travel and hold onto those receipts!

Meals & Entertainment – Any meals or entertainment with clients or potential clients are deductible if the purpose for meeting is business-related. If the meal or show occurs immediately before or after a business meeting or consultation, the cost of the meal or tickets can be deducted. If you have a team and you provide meal perks to facilitate people working late, you can deduct that, too.

Gifts – Got a client that’s celebrating a 50th birthday or an employee that’s having a baby? You can bless them with a gift and deduct its value if it’s under $25.

Social Security – If you are a sole proprietorship, the bad news is that you’re responsible for both the employee and employer’s contributions to your social security. The good news? You can deduct half the cost on your 1040.

Wages paid to your kids – For sole proprietors or partnerships where you and your spouse are the only partners, you can employ your children. Depending on how much you’re paying them, they may not need to file a tax return but you can still claim their wages as a deduction.

Donations – Partnerships, LLCs and S Corporations can pass cash donations or donations of old equipment to the owner to claim on their personal taxes. C Corporations can claim the donations on business taxes.

Education – Any classes, training, conferences, etc. are deductible if the training is directly related to your field or to the running of your business.

Business related materials – The cost of any magazine subscriptions, books, audiobooks, etc. related to your field or to running your business can be deducted.

Office supplies – Any supplies purchased specifically for your business are deductible. Printer ink, pens and pencils, file folders, even tape and staples! Save receipts for everything. All those little purchases add up!

This is by no means an exhaustive list of all the potential deductions just sitting there waiting for you! To take full advantage of all the tax benefits to owning your own business, contact us today for a consultation. Having someone on your side who knows tax laws and regulations can make all the difference when it’s time to file.

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