Entrepreneur Tax Tip I: 75 Potential Tax Deductions
Feeling a little bit like the Sheriff of Nottingham is pounding at your broken foot for your last few bit of tax dollars? Well, you’re not alone. For entrepreneurs, this time of year can be painful and even sometimes scary. In honor of the tax season this year, we’re going to give you three different posts on how to maximize your tax benefits.
- 75 Items You May be Able to Deduct
- Meal Tips
- Late Filers
75 Potential Tax Deductions
This first post comes as an introduction to what’s out there that an entrepreneur might be able to deduct. More research will have to be done for each person’s individual situation, but it’s important to know the possibilities.
The most important thing perhaps, is that you are rather meticulous about tracking your expenses. Mark Kohler, CPA shares his opinion:
“When documenting, go beyond collecting receipts. If you hire your teenager as an employee, document his or her duties and hours. On parking and toll receipts, write your destination and business reason for the road trip. You should track every business expense and comb over them with your CPA at the end of the year to ensure you only take legitimate deductions, both to minimize your risk of audit and to have the documentation in place in case the IRS ever comes knocking.”
Now for that list of possible deductions (click here for source):
Accounting fees
Advertising
Amortization
Auto expenses
Bad debts that you cannot collect
Banking fees
Board meetings
Building repairs and maintenance
Business association membership dues
Business travel
Cafeteria health-insurance plan (requires plan)
Charitable deductions made for a business purpose
Cleaning/janitorial services
Collection Expenses
Commissions to outside parties
Computers and tech supplies
Consulting fees
Continuing education for yourself to maintain licensing and improve skills
Conventions and trade shows
Costs of goods sold
Credit card convenience fees
Depreciation
Dining during business travel
Discounts to customers
Education and training for employees (new)
Employee wages
Entertainment for customers and clients
Equipment
Equipment repairs
Exhibits for publicity
Family members’ wages
Franchise fees (new)
Freight or shipping costs
Furniture or fixtures
Gifts for customers ($25 deduction limit for each)
Group insurance (if qualifying)
Health insurance
Home office
Interest
Internet hosting and services
Investment advice and fees
Legal fees
License fees
Losses due to theft
Management fees
Materials
Maintenance
Medical expenses (with plan)
Mortgage interest on business property
Moving
Newspapers and magazines
Office supplies and expenses
Outside services
Payroll taxes for employees, including Social Security, Medicare taxes and unemployment taxes
Parking and tolls
Pension plans
Postage
Publicity
Prizes for contests
Real estate-related expenses
Rebates on sales
Rent
Research and development
Retirement plans
Royalties
Safe-deposit box
Safe
Software and online services
Storage rental
Subcontractors
Taxes
Telephone
Utilities
Website design
Workers’ compensation insurance
As always, if you need tax advice or counsel, give our professional tax team a call here at GQLaw. We look forward to hearing from you!