Owning your own business is complicated enough without worrying about added tax burdens every year. Make sure you take advantage of these 3 deductions this year:
1) Ordinary Business Expenses
The IRS defines these as those which are necessary and ordinary in your business operations. For example, the computer you use for your home-based online business is both an ordinary and necessary expense. If your business has you on the road often, the car you use, as well as the gas and insurance to operate it, would also count here. Even if you use the vehicle for personal use as well you divide the total cost and deduct the business part.
The IRS also states an expense, “does not have to be indispensable to be considered necessary.” This means upgrading your office furniture, tools, or other supplies may qualify as a deductible. Consult a tax professional to make sure you are writing off all you can in this area.
2) Business Use of Your Home
If you operate your business out of your home, there are further deductions you should be taking advantage of. Even if you’re only using part of your home, part-time – you may still qualify. Some of these can include the interest you pay on your mortgage, insurance payments, utility bills, or repairs you may make to the property.
By the way, even if you don’t own the home you are working out of you can still deduct the rent you pay to use the property as a business expense!
3) Employee Expense
Having people work for you brings not only increased production, but added tax benefits for you, the business owner. The amount you pay them for helping your business grow and succeed can be deducted, so long as the amount is reasonable. A good rule-of-thumb is the amount you pay your employees should be comparable to what they could make at a similar job.
Remember, these are only the top 3 deductions you should be taking advantage of. There are many others you should be using, including: state, local, & foreign tax write-offs, insurance deductions, interest deductions, and many more. To ensure you are getting back all you can click here to talk to a tax professional.
 IRS. (2018). Deducting Business Expenses. Retrieved from https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses#what
 IRS. (2018). Employees’ Pay: Test 1 Reasonableness. Publication 535. Retrieved from https://www.irs.gov/publications/p535#en_US_2017_publink1000208662