Understanding the nuances associated with proper tax methods and protocols becomes increasingly important as a small business owner. In fact, as many small business owners understand, tax season can be incredibly stressful and very overwhelming. But, tackling tax season head-on with professionals can be the best way to approach the season ahead. The reality is, there is nothing worse than feeling ill-prepared for tax season. Ultimately, knowing the right deductions you can take advantage of as a small business owner can really align your goals with your business. Here are some of the most commonly overlooked small business tax deductions that you might consider taking advantage of in the upcoming tax season.
The Home Office Tax Deduction
If you work from home, you might be able to create a write-off based on your work from home situation you have created for yourself. In fact, to properly write off your home office, you’ll need to use it as (1) exclusively and regularly as your principal place of business and (2) exclusively and regularly as a place where you meet with clients, partners, etc. The reality is, if you use the space for anything other than your place of business, you forfeit the right to use it as a tax deduction. However, if you have a work area in your bedroom, you most likely won’t be able to use your home office as something that would end up being deductible on your tax returns for your small business.
Any Auto Or Transportation Fees
If you use your car at all for work transportation, you might just be able to use those miles as something that is tax-deductible. In fact, getting in touch with a tax professional can help ensure you are making the most out of the small business tax deductibles that might be available to you without even knowing it.
At the end of the day, tax season can be brutal for any small business owner. In fact, there are a couple of crucial points to consider when understanding what tax deductions apply to you and which ones do not. Having the assistance of a tax professional can help alleviate a lot of the stress you’ll likely feel as tax season approaches.
Contact Bowman & Company Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services aim at decreasing your taxes and increasing your net worth through responsible, timely, and accurate recordkeeping. We offer our services to clients throughout the Washington, D.C. metropolitan area including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.