For small business owners, tax season marks a time when you may have the opportunity to reduce your tax burden by taking advantage of a number of tax deductions available to specific types of businesses.
These deductions currently encompass a range of already existing tax-breaks along with several, newer deductions that have the potential to revolutionize the game for your business.
Whether you are looking for a deduction for your vehicle expenses, home offices, or even a break which will allow you to write off nearly 20% of your income, there are a number of options available.
While larger tax-software providers offer options to get a general overview of the tax breaks offered for your company, it is important to have an idea of what deductions may be applicable for your business.
You never want to make a simple mistake and cost yourself thousands of dollars. Regardless of whether you are filing by yourself or with the help of an expert, here are several new tax breaks that you should be aware of.
They include deductions for office rentals, retirement plan contributions, business vehicles, home offices, Section 179 breaks, along with qualified business income.
Each of these are extremely different! For example, the Section 179 Deduction was just released, and this will be one of the first years that businesses can apply for it. Through this deduction, small business owners can write off nearly double the expenses of several purchases, up to $1 million. Expenses deductions include equipment, vehicles, machinery, as well as computers.
Similarly, the home office deduction is now available, and if you run your business out of an office connected to your house, this is for you. You can deduct a part of your homeowner’s insurance, maintenance costs, and your home’s utilities. Only certain spaces are eligible, so you should make sure that your office reaches the guidelines.
Overall, in order to maximize the productivity of your business, you should be aware of the tax deductions that are available and take advantage of them. It’s essential for the long-term health of your business to save as much money as possible, and these breaks are a key way to tuck some cash away.