Uncategorized92 Tax Deductions Every Small Business Should Know About

 

The IRS isn’t known for cutting to the chase. If you’ve ever dug through IRS.gov looking for an answer to your question, you likely came away with much more information than you could ever want.

 

That is, unless you happened to be looking for a straightforward list of tax deductions for your small business. The IRS is uncharacteristically silent on this point.

 

In fact, tracking down the ultimate list of small business tax deductions is a grueling task that takes hours and hours of research. But lucky for you, we’ve gone ahead and put it together for you! We uncovered 92 potential small business tax deductions—and 11 that you shouldn’t even think about claiming.

 

Download your copy of the Entrepreneur’s tax pack for 3 time-saving business tax resources.

 

Each tax deduction has its own specific rules, so consult an expert before you get too excited. (If you’re an inDinero client, talk to your account manager!) And remember: Not every one of these will apply to you. For example, you may be tempted to deduct a home office, but won’t get very far if you also have an office at your place of business.

 

As always, document, document, document. A shoebox full of receipts doesn’t quite cut it. Always note the business reason for the expense, even if you just write it on the back of a receipt. (But if that gets cumbersome look for a good accounting solution, like ours, that can streamline the process for you.)

 

92 small business tax deductions

1. Accounting fees
2. Advertising & marketing
3. Amortization
4. Bad debts that you cannot collect
5. Banking fees
6. Board meetings
7. Building repairs and maintenance
8. Business association membership dues
9. Business travel (here’s what you need to know!)
10. Cafeteria health-insurance plan (requires plan)
11. Car expenses
12. Charitable deductions made for a business purpose
13. Charity or traveling to perform charitable services
14. Cleaning/janitorial services
15. Collection expenses
16. Commissions to outside parties
17. Computers and tech supplies
18. Consulting fees
19. Continuing education for yourself to maintain licensing and improve skills
20. Contractors
21. Conventions and trade shows
22. Credit card convenience fees
23. Depreciation 
24. Discounts to customers
25. Eating out while you’re traveling for business
26. Education and training for your employees
27. Employee wages
28. Employee benefits
29. Entertainment for customers and clients
30. Equipment
31. Equipment repairs
32. Exhibits for publicity
33. Family members’ wages
34. Franchise fees
35. Freelancers
36. Freight or shipping costs
37. Furniture or fixtures
38. Gifts for customers or employees ($25 deduction limit for each)
39. Group insurance (if qualifying)
40. Guard dog
41. Gym for employees, located onsite
42. Health insurance
43. Home office (see our handy article)
44. Insurance premiums for credit, liability, malpractice, worker’s comp, and other insurance
45. Interest
46. Internet hosting and services 
47. Inventory
48. Investment advice and fees
49. Legal fees
50. License fees
51. Management fees
52. Materials
53. Maintenance
54. Medical expenses (with plan)
55. Mortgage interest on business property
56. Moving
57. Newspapers and magazines
58. Office supplies and expenses
59. Outside services
60. Payroll processing
61. Payroll taxes for employees, including Social Security, Medicare taxes and unemployment taxes
62. Parking and tolls
63. Penalties and fines paid for late performance or nonperformance of contracts
64. Pension plans
65. Permits and fees
66. Postage
67. Profit sharing
68. Publicity
69. Prizes for contests 
70. Real estate-related expenses
71. Rebates on sales
72. Rent
73. Research and development (we literally wrote the guide on this one!)
74. Retirement plans
75. Royalties
76. Safe-deposit box
77. Safe
78. Service fees
79. Software and online services
80. Startup expenses
81. Stereo equipment for playing background music at work
82. Storage rental
83. Subcontractors
84. Taxes (amazingly, taxes incurred in running your business are deductible)
85. Telephone
86. Theft and loss
87. Tips. Just because you didn’t get a receipt doesn’t mean you can’t deduct the cost, but you should document it just the same.
88. Uniforms for your employees
89. Utilities
90. Waste removal
91. Website design
92. Workers’ compensation insurance

Don’t even think about trying to claim these as a small business tax deduction

1. A small business loan—but you can deduct whatever you purchase with the loan
2. Business attire that you can wear outside of work (ie, non-uniforms)
3. Contributing your time to charity
4. Membership dues, even to a professional organization
5. Federal income tax payments
6. Your life and disability insurance premiums if you’re a sole prop., partnership, or S Corporation
7. Lobbyists
8. Penalties and fines you pay as the result of breaking the law
9. Political contributions
10. Professional accreditation fees
11. Your own salary if you’re a sole proprietor

{{cta(‘402057e0-8064-4b6f-88b2-1c6e0721bc99′,’justifycenter’)}}