Commonly Overlooked Tax Deductions For Business Owners

Taxes can be a sore spot for business owners, especially when you look at what you owe to the IRS once the audit is complete. But, did you know that there are several overlooked tax deductions by business owners every year?

You read that right. It’s basically like giving away money to the government without paying attention. Well, that stops now; below, you’ll find some of the most commonly overlooked deductions that you might want to pay close attention to when it’s time to file taxes for your business this year.

Remote Working Expenses

With the pandemic still looming in many places, some people have chosen to continue allowing employees and their company to work remotely. This means that everyone had to reconfigure and create a workspace that works efficiently when needing to get work done.

If you have a space at home that’s only used as a home office and nothing else, you could qualify for the home office deduction. You’d provide receipts of everything purchased for the home office that helps you do your job daily.

Mileage

There are times when you’ve got to travel for business, whether it’s meeting a client or attending the opening of a new building. Regardless of where you’re going, you should be reimbursed for the mileage that it takes you to arrive at the location.

The IRS has mileage reimbursement clauses then based on the mileage and the reimbursement rate, it’ll give you a precise amount that can be deducted from your taxes.

Training

There will be times when you look to further your knowledge of your business and other topic areas. Because of this, you might consider going back to school, which is commendable because you can always learn something new.

For educational expenses to be deducted, it has to be able to link back to your business. This means the classes your taking have something to do with helping you improve the efficiency of strategies of your current company.

Property Rent

If you’re renting a space for your company, you’ll be happy to know that you can deduct your rent from your taxes. And the beauty of this is it doesn’t matter what kind of property front you’re using; whether it’s a large building or a small corner of a building, it’s deductible.

Space must exclusively be used for your business and nothing more.

Overlooked Tax Deductions: Deductions, Deductions, Deductions

There are tons of overlooked tax deductions that business owners leave behind each year. If you’ve got to purchase materials for educational purposes or to create a home office, that can all be counted towards your business deductions for the year.

If you’re looking for a reliable company to help you with all your tax service needs, contact Sterling Tax & Accounting. They specialize in taxes, bookkeeping, and other beneficial financial services to help your company save money.