Maximizing Tax Savings for Your Small Business: 92 Deductions You Need to Know About

If you’re a small business owner, you know the importance of keeping your expenses low. But did you know that you can save money on taxes by taking advantage of deductions? In this article, we will discuss 92 potential deductions that can help you maximize your tax savings.

What are tax deductions?

Tax deductions are expenses that reduce the amount of taxable income you have. In other words, if you spend money on a deductible expense, you can subtract that expense from your total income and pay taxes on a smaller amount. There are many deductions available for small businesses, and it’s important to take advantage of as many as you can to reduce your tax bill.

92 deductions you need to know about

1. Office rent
2. Utilities
3. Property taxes
4. Office supplies
5. Repairs and maintenance
6. Business insurance premiums
7. Legal fees
8. Accounting fees
9. Advertising and marketing expenses
10. Employee salaries and benefits
11. Travel expenses
12. Vehicle expenses
13. Depreciation on equipment
14. Office furniture
15. Telephone and internet expenses
16. Business-related meals and entertainment
17. Business-related educational expenses
18. Charitable donations
19. Research and development expenses
20. Business-related subscriptions and memberships
21. Commissions and fees
22. Bank charges
23. Bad debts
24. Rent on equipment and machinery
25. Taxes and licenses
26. Interest on business loans
27. Credit card fees
28. Business-related gifts
29. Professional development expenses
30. Work-related education expenses
31. Moving expenses
32. Health insurance premiums
33. Retirement plan contributions
34. Employee education assistance programs
35. Workers’ compensation insurance
36. Disability insurance premiums
37. Home office deduction
38. Childcare facilities and services
39. Employee gym memberships
40. Business coaching and mentoring expenses
41. Paid sick and vacation time
42. Dependent care benefits
43. Cell phone expenses
44. Software expenses
45. Business-related books and publications
46. Cleaning and janitorial expenses
47. Consultation fees
48. Contractor expenses
49. Data processing expenses
50. Equipment rentals
51. Freight and shipping expenses
52. Graphic design expenses
53. Licenses and permits
54. Outplacement services
55. Professional and trade association fees
56. Internet hosting
57. Security expenses
58. Safety equipment
59. Environmental cleanup expenses
60. Business incorporation fees
61. Trademark and patent fees
62. Headhunter fees
63. Malpractice insurance premiums
64. Business gifts to clients
65. Office party expenses
66. Employee bonus programs
67. Research and development credits
68. Film and video production expenses
69. Production design expenses
70. Abandoned property loss
71. Amortization expenses
72. Casualty loss
73. Equipment leasehold improvement expenses
74. Impairment loss
75. Employee awards
76. Royalty expenses
77. Work opportunity tax credits
78. Moving job expenses for military personnel
79. Domestic production activities deduction
80. Capital gains and losses
81. Foreign tax credit
82. Investment interest expense
83. Qualified electric vehicle credit
84. Self-employment tax
85. Fuel tax credit
86. Alternative motor vehicle credit
87. Small employer health insurance credit
88. Credit for increasing research activities
89. Work opportunity credit for long-term family assistance recipients
90. Work opportunity credit for veterans
91. Credit for employer-provided child care facilities and services
92. Energy-efficient commercial building deduction

Examples of deductions

Let’s say you run a small business and you spend $10,000 per year on office rent. You can deduct that $10,000 from your taxable income, which will lower your tax bill.

Another example is if you spend $1,000 on business-related travel expenses (such as flights, hotels, and rental cars), you can deduct that $1,000 from your taxable income.

It’s important to keep track of all your expenses throughout the year so you can accurately calculate your deductions come tax time.

Conclusion

Maximizing tax savings for your small business doesn’t have to be difficult. By taking advantage of deductions, you can reduce your taxable income and save money on taxes. Make sure to keep accurate records and speak with a tax professional to ensure you are taking advantage of all possible deductions.