Contrary to popular belief, what you don't know can hurt you, especially when it comes to tax deductions you
At the MB Group, we are a team of seasoned tax accountants and CPAs who specialize in helping businesses maximize their tax deductions. Through the years, we've helped business owners across virtually all industries create competitive advantages with strategic tax planning and financial planning.
To help you avoid leaving money on the table, we've outlined some of the most costly but commonly missed tax deductions by business owners. Continue reading to learn more and don't hesitate to reach out to the pros at MB Group for specialized tax planning and financial planning solutions.
Do you use your vehicle for business purposes? If so, you may be eligible to deduct expenses associated with the use of your vehicle. For instance, this includes driving:
You have one of two ways to deduct the mileage associated with business travel: actual expenses vs standard deduction. To determine which method is best, it's critical to record all expenses. You should be capable of proving the cost of automobile expenses, the mileage for each use, the date you began using the vehicle for business, and the total miles for the entire year. At the same time, make sure you keep excellent financial records pertaining to the purpose of each business trip and business destination. While taking the standard deduction for business trips is the easiest way to write off car expenses, you could be leaving money on the table.
Whether you are a freelance writer or have started your own business, you may be eligible to take a tax break
Direct home office expenses are those that are related solely to your home office. This means these expenses are not associated with other areas of your personal living space or home. Because these expenses are associated only with your home office, you may be able to write off the whole amount. For example:
The key to using this deduction is for the expenses to be only related to the office space—not the living space. For clarity, if you hire someone to refloor your entire home, it will only be partially deductible because non-business areas were impacted. However, if you hire someone to just refloor the office, it will be 100% deductible.
Did you know that you may be able to deduct any training or educational workshops you attend that contribute to running your business? This includes:
However, for an educational expense to be deductible, it has to be related to your business. If you're on the fence about whether it's related to your business, ask yourself if the session would:
Many independent contractors, sole proprietors, and small business owners turn to freelancers and other contractors to meet short-term and long-term business needs. But did you know the cost of contract labor is deductible? Make sure you issue Form 1099-MISC to any contractor that you pay $600 or more in the year, and you may be able to deduct the payments.
Do you run an advert in a local circular? Are you using Facebook paid ads or Google AdWords to generate traffic to your website? If so, you may be able to fully deduct these marketing and advertising expenses on your tax return, regardless of the vehicle you use. Many expenses associated with marketing will fall under the tax-deductible "advertising expense."
We get it—tax planning is tough and making sure you maximize every possible tax deduction available to your business can be tougher, especially if you're attempting to do it alone. Fortunately, you don't have to. At the MB Group, you have access to an entire team of experienced CPAs and tax planning professionals. We'll work closely with you to maximize your tax deductions and create a competitive advantage.
Contact the MB Group today to learn more about leveraging strategic tax planning for growth.