Top-Notch Tax Breaks for Small Businesses

 

If you own a small business, then you probably already know that business expenses can easily grow out of control.

Fortunately, there are many easy ways that your business can save money

One of these ways is by taking advantage of the many tax breaks that are available to small businesses.

The more tax breaks you are aware of and the more readily you use them, the more your business can save and prosper.

Business Vehicle Use

To begin with, if you have a vehicle you use for business purposes, such as making deliveries or going to meetings, you can easily deduct all of the expenses related to the business use of that vehicle.

For example, you could deduct the actual expenses, like what you spend on gas for vehicle purposes, what you spend on parking, and what you spend on tolls when traveling for business-related purposes.

If you don’t want to keep track of every single expense, you can take the IRS standard mileage rate deduction instead.

Either way, as long as you keep careful track of which expenses are business-related and which are personal, you can deduct the former and save big money for your business.

The Qualified Business Income Deduction

Thanks to a recent change in tax law, there’s a good chance that your business will qualify for a 20% income deduction when tax time rolls around. 

Of course, there are some eligibility requirements, such as having to make at least $10,000 in profit and not being able to make over $157,500 for single filers and $415,000 for business owners who file a joint return. 

Advertising Costs

If you’re like most business owners, then you probably spend a fair amount of money on promoting and marketing your business. 

Fortunately, almost every advertising cost is covered as a deduction. Things like hiring someone to design your logo, sponsoring a non-political event, printing business cards, or launching a social media campaign are all covered and fully deductible.

Home Office Costs

Many small business owners have a dedicated office space within their homes.

If you do, you can qualify for a deduction, typically based on the size of that office space. Your office equipment, like a work computer or even something as small as staples, can also be deducted. And, really, when you’re saving money on taxes, every little bit helps!

If, instead of a home office, you have an actual office, don’t worry. You can easily deduct the cost of renting the office space. And, with rent as high as it is in many locations, this particular deduction can help you to save a lot of money!

In all of these ways, working the tax system can benefit your business and help it to save money. 

However, many people have trouble understanding and correctly applying all of the deductions for which their business is eligible. If that happens to you, you may wish to hire a qualified tax advisor.

If you can’t afford to do that or if you find that, despite your deductions, you still aren’t saving enough, you may want to consider a title loan or other alternate sources of funding to get your business to where it needs to be. If you use your loan funds responsibly, they can ultimately be a major asset to your business.

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