Don’t Miss Out on These Common Tax Write-Offs

What is a tax write-off?

As a small business owner, have you ever wondered what a tax write-off really is? How does a tax write-off affect your business? I’m here to tell you what a write-off is and provide a list of some of the biggest write-offs available to your business.

According to the IRS, a write-off is a business expense that is ordinary and necessary for running your business. A write-off, deduction or tax deduction are used interchangeably.  Simply put, common expenses used to run your business can be asserted as tax deductions.  

How does it work?

Business write-offs are included in your annual tax return. For income tax purposes, when you buy something for your business, you are able to deduct it from your taxable income. As a result, the more expenses your business can write-off, the less tax you are going to have to pay. 

Often business owners overpay in taxes because they aren’t taking some of the biggest tax write-offs available.

How can Steadfast Bookkeeping Solutions help?  Steadfast Bookkeeping Solutions can remove the pressure and help guide you to ensure your company is accounting for and writing-off all possible business expenses. Sign up for a free consultation today!

Are you missing any common tax write-offs?

Here is a list of a few common write-offs that you don’t want to miss out on!

Business Start-up Costs 

As you likely know from experience, most business owners pay initial start-up costs out of pocket as the business has not brought in money yet. Keep receipts and other documentation to record start-up costs and deduct these costs when it comes time to file your taxes.

Advertisement and Promotion 

The cost of advertisement and promotion of your business is 100% deductible. There are so many ways you can promote your business including printing business cards, launching a website, sending postcards to clients or prospective clients, running a social media campaign, and so much more.

Cell Phone Expenses

Who doesn’t use their cell phone for business calls, texts, emails today? You can deduct the amount of your phone and monthly service fees based on how much you are using your phone for business purposes.

Business Miles Driven

Keep track of your business miles for even more tax deductions. Driving to the store for more office supplies, running to the bank to make deposit, or heading out to meet a client all qualify as business miles. You can log your business miles using helpful apps such as MileIQ, Everlance, or QBO to assist you in keeping track of how much you are driving for your business. The standard mileage rate for 2022 is 58.5¢/mile.

Home Office

Do you work from a home office? Do you use a portion of your house to store inventory? If so, you can likely write-off a percentage of many home expenses including your mortgage or rent, insurance, utilities, maintenance and repairs.

Travel Expenses

Conferences and seminars that take you out of town are also deductible expenses. This deduction includes any flights, lodging, car rentals, meals, and more. Just remember to keep detailed records including the amount of each expense, dates of travel, and the business reason for the trip. 

Retirement Contributions

You can deduct contributions made to employee retirement accounts as a business expense. The amount you can deduct depends on the type of retirement plan you have chosen.

Now that you have been given a few helpful tips, you will be able to pay closer attention and track your 2022 tax write-offs. Or if you are too busy running your business to make sure it’s receiving all possible deductions, Steadfast Bookkeeping Solutions is here to help. Click here for a free consultation!

Looking for more information? Discover details regarding the write-offs listed above and even more write-offs approved by the IRS here: https://www.irs.gov/publications/p535