Tax deductions small business owners often forget

Tax deductions small business owners often forget

Keep this list handy before preparing your next tax return.

Want your small business to be more profitable? Remember, it’s not how much you make. It’s how much you keep. Check out these common tax deductions before you prepare your next income tax returns. If you qualify—but aren’t taking—these deductions, then you’re leaving money on the table.

  • Home office expenses: Once upon a time, this deduction was known to trigger audits. But today qualifying is easier (and less likely to raise red flags with the tax authorities). In addition, figuring out the deduction is also simpler.
  • Business use of a vehicle: You can use the actual prorated expenses for your automobile(s).
  • Interest on business debt: This deduction includes business-related credit card transactions as well as, say, the interest on the mortgage for your building or the interest on a loan for purchasing inventory or equipment.
  • Marketing expenses: The costs for advertising or otherwise promoting your business (TV and radio ads, printed brochures, etc.)—including the costs of hiring a website developer.
  • The cost of organizing a business entity: For instance, if you use a lawyer to create incorporation documents, the legal fees are deductible. 
  • Pre-opening expenses: These costs might include preparing your storefront for shoppers or special signage to attract passers-by.

Tax deductions small business owners often forget: These should help to always remember

Improve your financial literacy 

Related Articles

As the year gradually draws to a close, many business owners are looking forward to a winding down of operations and a chance to

If you were asked about your finances would you know your numbers? Would you remember your deposits, your debts, your net savings, your average

When we talk about business transformation, most organizations attempt to achieve that by focusing on cutting costs and protecting the margins. However, I dare

Contact Us

Address

17 Military street, Onikan, Lagos Island, Lagos, Nigeria.

Phone

+234 703 417 2590

Email

info@midridgeinternational.com

Subscribe Now For Exclusive Offers And Updates!

Subscribe to our newsletter for the most recent blog posts, promotions, and updates delivered right to your inbox.