TAX DEDUCTIBLE EXPENSES THAT BUSINESS OWNERS OFTEN MISS
Updated: Oct 12, 2022
When it's time to file your taxes, it's normal for business owners to feel nervous about their impending tax bill or worry that they're missing common tax deductible expenses. The more tax deductions that you have, the lower your final tax bill. Here are a few tax deductible expenses you don't want to miss.
1. Marketing Costs
Most business owners spend money advertising their company to potential customers or marketing new products or sales campaigns. These expenses are tax deductible.
For example, if you've invested in a new marketing campaign or purchased advertising space, these expenses are qualifying deductions. If you set up a booth at an event to meet with potential clients and provide product demos, these event costs are also deductible.
2. Bank and Payment Fees
Many business owners have to pay fees to accept certain types of payments (like credit cards) or for certain banking services. Any fees that you pay your card processor or a bank are tax deductible expenses.
3. Costs for Business and Employee Meals
Business meals or meals that you purchase for your employees are other items you can deduct. Just make sure that you save the receipt and make a note as to why the meal was business-related.
If you decide to purchase dinner for your employees to reward them for a productive quarter, note this with the receipt. Or, if you're hosting a meal to meet with a prospective client, this is another qualifying expense.
4. Tax Deductible Expenses for Operating a Vehicle
Business owners who use a vehicle to run their companies may deduct the costs associated with that vehicle. If the vehicle is only used for business, all the expenses are tax deductible.
However, if you use a personal vehicle part-time for business matters, you can either deduct a fixed amount per mile or the actual costs of operating the vehicle for your business affairs.
Have more questions on overlooked tax deductible expenses? Contact us today for assistance!