These days, many small businesses are barely getting by. The COVID-19 pandemic has taken a chunk out of operational activity for many. Margins are slimmer than usual, and some businesses are barely staying afloat.
One way to make up losses, at least partly, during this downturn and beyond is to save on the taxes you owe. Are you aware of the small business deductions that can legitimately be yours? Perhaps you can benefit from small business accounting services Cedar Hill TX.
Small Business Tax Deductions Often Overlooked
Whether your enterprise is in its planning stages, or already up-and-running, one key to profitability is legally minimizing your taxes. The following are among the many legitimate tax advantages for small businesses that can be overlooked:
- Startup Costs. The federal government provides some outstanding tax breaks for certain costs of starting up your business. You may quality for startup deductions of up to $5000. You may also be able to deduct up to an additional $5000 for organizational outlays.
- Home Office Deduction. Do you operate your business from your residence? If so, you may qualify for a home office deduction. This must be handled properly: Take a look at IRS Publication 587 for more details.
- Educational Expenses. Do you pay to have your employees educated or trained in any aspect of your business? Good for you. The IRS permits you to deduct these costs in many qualifying situations.
Be Sure To Keep Good Records!
Always remember that you must keep accurate records when taking these deductions, whether you are attempting to file on your own or working with a professional. These records include receipts, invoices, and other documentation relating to business operations. These deductions are legitimate and can save you on taxes, as long as you have the documentation to prove them if audited.