Starting or already running a small or home-based business? No doubt you have a lot of expenses. The good news? Many are tax deductible. Here are a few examples:
Interest paid on business loans. Just like the interest you pay on your home loan is deductible on your individual tax return, in most cases interest on your company’s debt is deductible on your business return. We can help you determine if the interest you pay on a loan or line of credit is a deductible business expense. Note: This is one area where you’ll want to be extra careful to keep good records, including the amount of interest you paid, the lender that provided the loan, and what the loan proceeds were used for.
Bad debt. In most cases, you can deduct the value of goods that a customer did not pay you for or goods that were stolen or shoplifted. This is a tricky area in terms of deductions because it depends on what type of accounting method you use, and whether you provided goods and services (or both) to a customer who didn’t pay.
Marketing expenses. Many small and home-based businesses have a lot of marketing expenses but don’t realize that a wide range of brand-building expenses are tax deductible. You may be able to deduct the cost of business cards, networking events, dues to professional organizations, admission to trade shows, business gifts and more. We can help you determine which of your marketing expenses can be deducted.
These are just a few of the many deduction possibilities that we can discuss with you. Not taking all the deductions that you’re entitled to is like leaving money on the table. We can help you take advantage of all the tax breaks that your business qualifies for, which leaves you with more time to build your business. We’re business experts: We can do everything from servicing all of your payroll and bookkeeping needs to providing services on a monthly or quarterly basis. We’d love to hear from you!