Operating a business, whether large or small, can be incredibly rewarding. However, when tax season rolls around, even the most accomplished business owners may find themselves stressed out and overwhelmed. It shouldn’t be this way. For that reason, we’ve compiled a list of relevant deductions that can help you mitigate stress, navigate tax relief, and save your company hundreds or even thousands of your hard-earned dollars.
Does your company use a van or any other vehicle to conduct business? Many businesses deliver goods, shuttle clients, or otherwise use vehicles as part of their daily operations. In the vast majority of cases, the related vehicle expenses can be written off as deductions.
However, if you want to write off vehicle expenses, you need to keep careful notes about your expenditures. This includes costs like gas charges and oil changes. In 2018, the IRS actually let businesses write off 54.5 cents per mile driven, though that number fluctuates every year. This is one of the most simple but impactful ways your business can achieve tax relief.
Highlighters. Notepads. Cleaning supplies. Postage stamps. Truly, whatever items you can think of that relate to your business operation can be written off to achieve tax relief. The IRS may be sticklers, but they understand that certain goods are necessary to help your business run smoothly day-to-day. And it shouldn’t be a surprise that your business’s hardware can add up to a substantial amount.
Does your company use freelancers to conduct a large portion of your work? Maybe you’re a media company who hires writers to create content, or you occasionally contract workers to help design logos or products. However your company uses freelancers, contractor fees can be written off by issuing Form 1099-MISC. If your company has paid that contractor more than $600 over the course of year, you are entitled to deductions.
As a side note, if you do employ freelancers, make sure that you make them feel like they are a part of the team. They are an investment, and by showing them your appreciation they will feel inclined to work harder.
Many business owners fail to take advantage of the various insurance deductibles they’re entitled to. Just like signing up for a tax relief affiliate program, your insurance policies are designed to protect and even increase the worth of your company.
If you have purchased coverage for malpractice, business continuation, cyber liability, or even health coverage, your company may possibly qualify for a tax credit.
Do you or your employees frequently conduct business in another city, state, or country? If so, you know how the cost of air travel, lodgings, and vehicle rentals can add up. Luckily, these expenses can all be written off.
However, over time the IRS has cracked down on travel-related write-offs. If you want to apply for travel deductions, you should refer to IRS Publication 463 and do your best to explain why you qualify.
Work from Home?
If you work from home, or your business is operated out of a home office, you can apply for a variety of deductions which relate to your costs. This can include everything from the cost of getting your home painted to writing off a part of your mortgage that accounts for the percentage of your residence that is used for business. This would likely be your in-house office.
Some of these deductions, like calculating the percentage of your mortgage that your business accounts for, can be difficult to make. Consulting a financial analyst is a great way to make sure you’re getting the most out of your deductions without missing out on any potential tax relief.
If you have had to repair any physical damage to your place of work, that can generally be written off as a deduction. This includes anything from broken windows to pest extermination to general wear-and-tear repairs.
Achieving Tax Relief
Owning a business of any size is costly, and while tax season may feel like a stressful time, it’s also an opportunity to recoup some of your losses. Securing tax relief can be the difference between a thriving business and one that’s struggling in the new tax year, so it’s critical that each company takes their time to review all possible deductions.