Posted on: 5 March 2018
If you own a small business you might be wondering what you can do to save money on your taxes. Too many small businesses are overpaying on their taxes because they don't know what kind of deductions they can take. This is why it is important to hire a CPA that knows what they are doing when it comes to small business. Here are some deductions that you can take for a small business that you may not know about.
1. Depreciation of Equipment
When you run a business you spend a lot of money on equipment. Over time the equipment will lose it's value. Each year the equipment will depreciate by a certain percentage. This is why you need to be sure that you are accounting for the drop in value. This applies to your computers, furniture, machinery, and any other equipment that will need to be eventually replaced in your office or warehouse.
Every business has to spend some sort of money on advertising. Even it is just a billboard, or website SEO, there are always costs associated with getting your name out there. Did you know that the money you spend on advertising can be fully deductible? Make sure you keep track of all of the money you spend on any type o f advertising to give to your CPA.
3. Rent Or Mortgage Interest
Your office space can also have some deductions. First, if you are renting then you can count your rental costs as a loss. Second, if you own the building and have a mortgage on it, then you will have interest that you will pay each month. Take all of that interest and you can usually deduct all of it. This will significantly lower the amount that you will pay in taxes.
Lastly, every office and warehouse has it's supplies. You will need to buy paper, packaging materials, even things like pens, internet and utility payments are all able to be deducted from your full amount that you will pay. Keep track of all of the money that you spend on supplies so you can have proof of every deduction taken.
These are just a few of the many deductions small business owners can take. As you can see, hiring a qualified CPA could save you money since they know how to use each deduction to help you get a better deal.Share