Business owners need to be organized and aware throughout the year about expenses that they could use as tax deductions.
Experts recommend that you work closely with a tax professional who can advise you on what truly qualifies as a deduction and what records to retain in case of an audit. Here are some important categories to be aware of:
- Bank fees and loan interest, including account fees, check-printing costs, and interest on loans and lines of credit.
- Utilities and communication, such as water, electricity, garbage pickup, security fees, phone and Internet.
- Hiring, including worker wages, commissions and health insurance.
- Insurance, such as premiums for workers’ comp, property, and business liability.
- Legal and professional fees, including those for attorneys, accountants or other professional consultants.
- Rent, such as the property used for your business.
- Supplies, including office and cleaning supplies.
- Business travel, such as airfare, lodging, meals and tips.
- Licenses and dues, including business and professional licenses and franchise fees.
Be sure to ask your tax professional about what records to keep and all other categories where business expenses might be deductible. The more you know, the more you can save at tax time.