Overlooked Small Business Tax Deductions

Don't Miss Out on Potential Tax Savings

Most experienced small-business owners have an ongoing relationship with their tax specialist to simplify the tax filing process each year. Even so, some of the infrequently used deductions can easily be overlooked. The following is a list of business expenses that are often passed over in tax preparation season, and can serve to reduce your tax bill. Be sure to review all of your expenses and look for potential tax deductions you may have missed. Consult with your tax adviser when considering deducting any of the following items because limitations and special requirements may apply.

• Advertising and printing of business materials
• Automobile expenses for business use, using either actual costs of repair and gas or the standard mileage deduction
• Business entertainment
• Business equipment and furnishings
  • Business safe deposit box fees
  • Depreciation on business equipment
  • Office supplies
  • Software costs
  • Telephone (cell phones), Internet, television and other communication used for business purposes
  • Business gifts, provided they meeting IRS criteria
• Business insurance premiums
• Costs of business books, periodicals or newspapers
• Donations the business gives to charities.
• Dues or membership costs to professional organizations
• Education costs for self or employees, when business related
• Expenses when moving offices or other business facilities
• Fees and penalties
  • Relating to CDs, business checking, savings or money-market accounts
  • Associated with retirement accounts for self and employees
  • For credit bureaus, Better Business Bureaus, local associations, etc.
  • Paid to employment agencies
• Interest payments on business loans
• Janitorial, landscaping and maintenance costs
• Losses due to fire, windstorm, hail, flood or other natural disasters may.
• Losses due to theft may be deductible.
• Mortgage or lease payments
• Self-employed tax deductions
  • Individuals can deduct a percentage of their health insurance premiums paid during the year, both for themselves and for their dependents
  • May deduct one-half of their self-employment tax
• Shipping and postage
• Tax preparation fees, accounting fees, attorney fees, insurance consultation fees, etc.
• Travel expenses
  • Hotels, airfare, meals and business entertainment while on the road
  • Costs of passports for self and employees when traveling for business purposes
  • Laundry costs when traveling for business
• Unpaid invoices or debts (i.e., uncollected debts).
• Utilities for business facilities

There are over 300 tax deductions available to small business owners. Every situation is different, and it is important that you go over your taxes with a professional to be sure you aren't overpaying. Sign up for a free strategy session with Pathfinder Business Strategies to see how our tax deduction strategies can help you keep more of the money you earn.

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