Lesser-Known Tax Deductibles for Small Businesses

Proledge

May 2, 2019

Tax Tips

Just like most other things, taxes are usual in businesses. Small companies in the U.S. are lucky to have many conceivable tax deductions that save them extra money wherever possible. A tax deduction helps to reduce the taxable income of the business. For instance, let us say you pay $2000 in a student loan interest that is tax-deductible: this means that your taxable income reduce by this amount ($2000) for the year in which you paid the interest.

The list below is a compilation of some of the lesser-known tax deductibles. Note that to use any of these deductions, you should prove the fees and cost. So keep the receipts of every one of them in an organized manner. Also, consult your tax advisor about when to use these.

Car Expenses

If you use your vehicle for business purposes and have a business-use car insurance policy in Austin, you can deduct all essential and conventional expenses related to your vehicle. More details including what business-use car insurance is and what paper work you need, get in touch with the best bookkeeper in Austin, Texas. You should keep a recorded track of all your car related costs. This incorporates car insurance and gas costs. This will be useful when you are filing taxes or being audited. The standard mileage rate for business use of a vehicle in 2019 is 58 cents per mile.

Charitable Deductions Made for a Business Purpose

Donating to charities is one of the best strategies that give your business an approach to create goodwill on any scale, from your nearby network to nation-wide. Donating to your preferred charity is a chance to ensure tax deductions before the ball drops. The money, supplies, and property your business gives would all be able to tally toward your deductible costs to help bring down your taxable income.

Home Office

The IRS isn’t known for its transparency, which scares off many small businesses. 26 million Americans have home offices, but, in 2010, only 3.4 million businesses claim home office deductions.

Regardless of whether you rent or own, you can claim a home office deduction if:

you use your office to manage a trade or business.
there is no other fixed location where you lead significant managerial or administrative activities for a trade or business.

Tax deductibles can be tricky and maintaining them in the books can be even more challenging. To get expert help, reach out to ProLedge Bookkeeping Services, the best bookkeeper in Austin, Texas. Our bookkeeper skills are tailored to your exact needs. You pay for the level of experience that you need, not a cent more. Contact us today!

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