Top Tax deductions every business should know

1. TopTaxDeductionsEveryBusiness ShouldKnow Running a business involves numerous expenses, but many of these costs can be deductedfrom yourtaxable income, reducingyour overalltax burden. Here’sa guide to someof the top tax deductionsevery business should know. HomeOfficeDeduction Ifyou use part of yourhome exclusively for business, you mayqualify for a home office deduction. This includes a portion of your rent or mortgage, utilities, property taxes, and homemaintenancecosts.Youcanchoosebetweenthesimplifiedmethod,whichallows astandard deduction of$5 per squarefoot of homeoffice space (upto 300 squarefeet),orthe regularmethod,which involvescalculating actualexpenses. VehicleExpenses Business-related vehicle expenses can be deducted using either the actual expense method or the standard mileage rate. The actual expense method includes costs like

2. gas, oil, repairs, insurance, and depreciation. The standard mileage rate for 2024 is 65.5 cents per mile driven for business purposes. Keep detailed records of allbusiness-related travel. Business Meals Youcandeduct50%ofqualifyingbusinessmealexpenses.Theseincludemeals with clients, partners, or employees where business is discussed. Ensure you keep receipts and note the business purpose of each meal. TravelExpenses Travelingforbusinesscanalsoyieldvaluabledeductions,includingairfare,lodging,car rentals,and meals. The travel must be necessary forbusiness purposes, and personal travel expenses cannot be included. Detailed records and receipts are essential. OfficeSuppliesand Equipment Expensesfor office supplies suchas stationery, printer ink,and business-related softwareare fullydeductible. Largerpurchases, likecomputers andoffice furniture, may need to be depreciated over time, but there are provisions for immediate expensing under Section 179. Utilities Utilitycostslikeelectricity,water,andinternetservicesusedfor businesspurposesare deductible. For home-based businesses, you can deduct the business portion of these expenses. Salaries and Wages Salaries, wages, bonuses, and other forms of compensation to employees are deductible, including payroll taxesthe business pays on behalf of employees. Insurance Premiumsfor various types of business insurance, including liability,property,and workers’ compensation insurance, are deductible. Health insurance premiums for employees are also deductible.

3. Advertising and Marketing Expenses for advertising and marketing, including online ads, print ads, business cards, and promotional materials, are fully deductible. These costs must be directly related to your business activities. Professional Services Feespaid to accountants, lawyers, consultants, and otherprofessionals for business services are deductible. Keeping contracts and detailed invoices will help support these deductions. CorporationRegistrations,Payroll,TaxAdvisors,TaxConsultants,TaxFiling,TaxServices.