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Most business owners want to minimize their taxes by tracking every business deduction they are entitled to. Here is a list of some of the more common tax deductions found when running a business:
Advertising- the cost to promote your business including website ads, phone book listings and social media costs.
Car and Truck Expenses-the actual expenses associated with operating a vehicle for the benefit of your business, such as a truck to make deliveries or a car to make sales calls to customers.
Commissions and Fees-payments to other companies or individuals for the benefit of your business such as commissions for outside sales representatives or franchising fees.
Contract Labor-payments to independent contractors for services provided for the business.
Depletion-amortization of the cost of resources such as mineral rights or timber.
Depreciation and Sec 179-amortization of the cost of capital assets purchased for the benefit of the business.
Employee Benefit Programs-acost of programs provided for employees of the business that are not related to a pension or profit-sharing plan.
Insurance-any non health related insurance for the business such as casualty or liability insurance.
Interest-interest expense paid on debt of the business which may be paid to banks, individuals or other companies.
Legal and Professional Fees-fees from attorneys or accountants for professional services provided for the business.
Office Expense-all costs related to generally operating an office for you business such as office supplies and postage.
Pension and Profit-Sharing-contributions by the business to pension, profit-sharing or annuity plans for the benefits of your employees.
Rent or Lease-costs to lease vehicles, machinery, storage or office space.
Repairs and Maintenance-all costs to maintain business assets that do not appreciably prolong the life of the asset.
Supplies-all incidental materials consumed in the normal operation of your business.
Taxes and licenses-all taxes and licenses required in the normal operation of your business including state and local sales tax, property taxes, state and federal employment taxes and any licensing or regulatory fees paid each year in the operation of your business.
Travel for business-expenses for lodging and transportation with overnight travel for your business while away from your normal home.
Meals for business-costs for meals while traveling away from home for business and costs for meals that are directly related to the conduct of your business. Meal expenses are generally limited to 50% of the actual cost of the meal.
Entertainment for business-You can only deduct entertainment costs related to events that are directly related to the operation of your business and are ordinary and necessary. Generally you cannot deduct costs for events that are considered primarily social in nature. Entertainment expenses are generally limited to 50% of the actual cost.
Utilities-all costs for electricity, water, gas, telephones and internet connections for your business.
Wages-all salaries and wages paid to employees of your business.
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