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.
