With the final quarterly tax due date coming up for business owners, we’ve compiled a list of taxes you can receive deductions and write-offs for so you can save money when September 16th rolls around. These tips can be used for the following year’s tax season as well!
Salaries & Benefits
Your employees’ salaries and benefits are tax deductible if they aren’t a company partner or an LLC member, and your employee salary is reasonable.
Depreciation
Depreciation, for taxes, is when you buy equipment for your business and can get write-offs each year for each piece of equipment or property you buy. For example, if you purchased a car for work, you could get tax write-offs for that car each year. The write-offs won’t cover the entire cost of the items, but over time will save you money. You might also qualify for bonus deductions, where 100% of the cost to buy the equipment is written off, so you essentially pay nothing! The government wants businesses to purchase equipment to keep the economy humming. So, don’t be afraid to buy company property to help your business grow as you can save money each year! This only works for large purchases, rather than small ones like a chair or pens.
Advertising & Promotion
This tax deduction is big, as it helps your company grow while paying less in taxes. Advertising expenses encompass billboards, Google advertising, and working with an ad agency. This allows you to increase your company’s brand awareness, sales, and engagement while paying fewer yearly taxes.
Startup Expenses
Starting a business is expensive. Fortunately, you can deduct up to 5,000 dollars in start-up expenses such as business licenses and logo designs. You can also deduct another 5,000 dollars from your taxes in organizational costs like legal fees for structuring your business name and likeness.
Insurances
For your business insurance and renter’s insurances, you can write-off as a tax deduction. If your business is located at your residence, you can also deduct from your property’s insurance as well.
Office Expenses
You can deduct tax payments on all menial office supplies and office software, so remember to file all your receipts! You can only get write-offs for office supplies or software purchased in the same year as the tax due date. So, if you purchased pens for the entire office 5 years ago you won’t be able to get a tax deduction for it.
Green Energy
Any form of renewable energy you use for your business location can be used as tax deductible. If you are using solar energy to power the entirety or part of your business, you can save money on taxes!
Business Meals
Keeping employee morale high is important for productivity, and buying meals for your employees is one way of doing just that. How ever many business meals you bought for your employees or clients can be written off as a tax deductible.
Travel Expenses
If your work requires a lot of travel to meet clients, take part in trade shows, or for other related business travel, you can deduct your business travel expenses from your taxes each year.
Plan Your Taxes with Intentional Accounting
When managing your finances, planning your taxes with intentional accounting is crucial. By outsourcing your accounting and tax planning to Intentional Accounting, you can proactively strategize and optimize your tax situation, ensuring you take full advantage of available deductions, credits, and exemptions. Our approach allows you to align your financial decisions with your long-term goals and minimize tax liabilities, ultimately leading to better control over your financial future. Intentional Accounting can help you make informed, tax-efficient decisions that support your overall economic well-being. Contact us today to get started!
