- #Tax write offs for small business owners 2016 plus
- #Tax write offs for small business owners 2016 professional
If you travel for business, you can deduct the price of your ticket, lodging, car rental, taxis, and other any expenses directly related to the trip. If your business only provides services, you are out of luck, any time dedicated to customers is nonrefundable. If your small business sells goods of some kind and you didn’t get paid for goods sold, you can deduct this.
If a client or customer fails to pay you, this debt may be deductible. Small businesses are able to deduct $5,000 in startup costs the first year the business is open and any remaining costs can be deducted over the next 15 years in equal amounts. Advertising, training employees, and consultant fees are all examples of eligible expenses. The money that went into getting your small business up and running can be deducted once your business opens. Fortunately, either option will keep more money in your pocket. While this is easier than the traditional method of figuring out the total square footage of your home office and diving it by your homes total square footage, the traditional method may save you more money. The IRS recently simplified this deduction by making it $5 per square foot with a maximum of $1,500 for an office space of 300 square feet. Meaning you can’t claim the family room as your home office if the entire family watches T.V. The IRS qualifies a home office as being a space devoted solely to business activities and nothing else. Many people hesitate to claim a home office deduction, but they shouldn’t. For 2016, the deduction drops to 54 cents per mile.
#Tax write offs for small business owners 2016 plus
Keeping a notebook in the car makes it easier to keep track of your trips, but make sure to be very specific and include the date, purpose of your trip, and any mileage and fees.įor 2015, you can deduct 57.5 cents per mile plus any business related parking fees and tolls. It’s important to keep a strict record of all business related miles, tolls, and parking fees. If you drive for business, the IRS will reimburse you for some of the costs related to keeping your car on the road. Here are eight tax write-offs that may benefit your small business this year.
#Tax write offs for small business owners 2016 professional
It’s never a good idea to mess with the IRS, so be sure to check on current rules and regulations and consult a tax professional before jumping into deductions. If you are looking to keep more money in your pocket this year, it’s important to take all of legitimate tax deductions you possibly can. Tax time is fast approaching and for many small business owners, stress and worry are beginning to set in.