As a small business owner, you’re always on the hunt to efficiently save money. Whether you’re a sole proprietor or you operate with a small team, you and your business can benefit from taking the tax deductions you qualify for. Unfortunately, many small business owners aren’t aware of what they’re able to deduct.
If you think you’ve paid too much in taxes this year, here are some of the top tax deductions you should keep in mind for the future. Knowing what your deductions will be ahead of time can help you properly prepare for tax season.
1. Property rentals and equipment rentals
Whether you rent an office, a workspace or a few desks in a co-working community, you’re able to deduct the rent during tax season. You can also deduct rent if you own a storefront, a factory or another brick and mortar facility related to your business. The entire cost of your rent is deductible.
The same rules apply if you rent machinery or equipment in your space. The full cost of your rental is deductible as a business expense.
2. Home office
A home office deduction is not the same as renting a space to do work. If you have an office in your home that you use for business purposes, you may be able to deduct a portion of that cost on your taxes. This is especially beneficial for sole proprietors.
However, if you’re going to use the home office deduction, be sure that you qualify. Your home office space must be used regularly and exclusively for business. This deduction includes all costs related to your home office.
3. Utilities and services
Whether you operate out of a store, an office or a home office, you’re able to deduct your utilities. This includes your internet, electricity, phone bills and any other utility or service you may need for your business.
If you use a home office, you can only deduct the…