Small-Business-Tax-Savings

Small Business Tax Savings: Common Deductible Expenses

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Small businesses in the US are fortunate enough to have enough possible tax saving options to save their money. Starting from your initial start-up costs to business gifts, here are some of the best small business tax savings tips you may be missing out on. All expenses must meet the IRS definition of ordinary and necessary to be deductible.

Advertising and Marketing

Small business tax savings may come from website expenses, business cards, promotional material, social media, etc.

Accounting Expenses

Samll businesses can deduct expenses for a bookkeeper, accountant, CPA, or tax adviser to help you manage your finances and deal with tax issues.

Dues and subscriptions

This small business tax savings tip includes routine fees for software, trade organizations, merchant (credit card) fees, etc.

Labor Expense

This includes employees and independent contractors.

Professional Development

This includes classes and training’s taken to develop skills related to your business.

Professional Fees

This includes legal, accounting, consulting and other professionals.

Meals (50%)

Meals with a business purpose that meet the IRS definition are deductible at 50%.

Office Equipment and Supplies

This includes computer, printer, furniture, paper, ink, pens, staples, postage, etc.

Office Overhead

This includes rent and utilities for office space, telephone, etc.

Public Transport

As a pre-tax payroll deduction, transportation costs for business reasons can reduce employer payroll taxes. 

Mileage

Based on the business owned vehicles mileage tax savings can go up-to 45p per mile for the first 10,000 miles, then 25p per mile.

 

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