7 commonly missed business tax deductions

As a tax professional, I’ve seen many small business owners miss out on valuable tax deductions that could save them a lot of money. In this blog post, I’ll be discussing the most commonly missed small business tax deductions and how you can take advantage of them.

            1) Home office deduction: If you use a portion of your home exclusively for business purposes, you may be able to deduct a portion of your home expenses, such as rent, utilities, and maintenance costs. To qualify for this deduction, the space must be your principal place of business, and you must use it regularly and exclusively for business.

            2)  Business use of your car: If you use your car for business purposes, you may be able to deduct expenses associated with that use, including gas, repairs, and maintenance. You can calculate your deduction using either the standard mileage rate or actual expenses, depending on which method gives you a bigger deduction.

            3)  Retirement contributions: If you have a retirement plan, such as a SEP IRA or a solo 401(k), you can deduct contributions to that plan on your taxes. This deduction can be especially valuable because it not only reduces your taxable income but also helps you save for retirement.

            4)  Health insurance: If you’re self-employed and pay for your own health insurance, you may be able to deduct those premiums on your taxes. This deduction can also extend to your spouse and dependents if they are also covered under your policy.

            5)  Business-related meals and entertainment: If you take clients or business associates out to eat or to events, you can deduct 50% of the cost of those expenses. This deduction is subject to certain limitations and restrictions, so be sure to keep good records and consult with a tax professional.

            6) Depreciation: If you own property, such as equipment or real estate, you can deduct a portion of the cost of that property over time through depreciation. This deduction can be complex, so it’s important to work with a tax professional to ensure that you’re taking advantage of all available deductions.

            7)  Professional services: If you use the services of lawyers, accountants, or other professionals for your business, you can deduct those expenses. This includes fees for tax preparation, bookkeeping, and legal services, among others.

By taking advantage of these commonly missed tax deductions, you can reduce your taxable income and save money on your taxes. Be sure to keep accurate records and consult with a tax professional to ensure that you’re taking advantage of all available deductions.