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Save money with the checklist for the small business tax deduction

  You make taxes on laptop and phone

Although taxes are a fact, especially for small business owners, there are ways to maximize your deductions so that more of your earned money gets into your pocket, not with the IRS.

The good news is that it is quite easy to calculate tax deductions for companies. However, due to important changes in tax legislation in recent years, it is good to get a refreshment about what is deductible. Use this checklist for small business tax deductions to determine what suits your business.

Business Insurance

Having the right business insurance can be the key to maintaining your financial health. Your company may require several types of business insurance, and you can often print commercial insurance premiums as part of your small business tax deduction.

These policies are usually included among those who would be tax deductible:

Marketing and Advertising

If you engage in a small marketing tactic, such as printing a few business cards every year, or a large-scale marketing such as renting a social media entrepreneur to promote your business, these costs can always be

Business Dining Room

You may be the type of business man who likes to eat wine and eat your customers, or maybe you take your staff out for temporary work breaks at the local water. Anyway if you have spent money on business meals, you can deduct 50 percent of that cost . To keep this deduction, keep a log of:

  • The amount of meal
  • Date and place
  • Business relationship between the people who were there

Business Constructions

When you get into things that may be for both Business and personal use, such as cars, Wi-Fi and home office, it is a little more difficult to determine tax deductions for small businesses.

The general rule of thumb for a vehicle is that if it is for both work and personal use, the deduction would be based on the amount of use. Track every business-related journey you make and submit the mileage cost as your deduction. If the vehicle is for business only and is never used for personal travel, you can deduct the entire cost of driving the vehicle and maintenance.

Business Travel

There are some IRS approved travel expenses, but the journey must be purely for business, more than one day and outside the city where you normally work . Keeping receipts for these expenses will be crucial when it comes time to file for tax deductions for companies. List each trip and associated costs, and keep a log of all business related trips.

Home Office

A year ago, a person working from home would calculate the cost of specific items to claim household deductions. Now that you are working remotely, it is easier than ever to decide on your home office for the small business tax deduction. Just deduct $ 5 per square meter of space used as home office, up to 300 square feet, which would be $ 1


Your square footprint includes costs for tools such as heat, electricity and Wi-Fi. Be prepared to prove that your workspace is exclusive to business use. There are three requirements:

  • The workspace has clearly defined boundaries. It should be a separate room or part of a room; Working from your bedroom is not considered exclusive for business use.
  • It must be the usual or normal place where you work.
  • You need to be involved in your company's regular and important business from your home office. For example, if you are a healthcare professional who sees patients in an offsite office, but you do paperwork and billing at home, it would probably not qualify.

Employees' salaries and benefits

In most cases, you can deduct wages and benefit from costs from your corporate tax. However, this only applies if you hire someone other than yourself (ie your company is not a sole proprietorship or partnership).

Legal and Professional Expenses

If you retain lawyers, accountants, accountants, or other professionals specifically related to your business, you may deduct those fees.

Adding it

Tracking and logging costs throughout the year are crucial for submitting your deductions as efficiently as possible. It will be much easier to work on your small business tax deduction checklist if you have kept accurate records throughout the year.

It's also a good time to make an insurance listing of your business coverage to make sure you have appropriate policies for your business needs. If the last year was one of growth, downsizing or simply keeping the course, you might find additional savings.

Start a free online application with Insureon today to compare insurance quotes from the best US carriers.

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