1. Home Office Deduction
Do you have a dedicated space in your home for your business? You may qualify for a deduction.
Pro Tip: Keep detailed records of your expenses and ensure your workspace is used exclusively for business.
2. Home Office Deduction
Meeting with clients over lunch? Hosting a team dinner? You can deduct 50% of your business meal expenses.
Pro Tip: Save receipts and jot down who you met with and the purpose of the meal to stay audit-ready.
3. Startup Costs
Did you form a sole proprietorship, LLC, S-Corp etc? You can deduct these expenses as well as marketing material for your business.
Pro Tip: Keep all receipts and categorize expenses for easier filing.
4. Startup Costs
If you use your car for business purposes, you can deduct vehicle-related expenses. This includes gas, maintenance, insurance, and even depreciation. Alternatively, you can use the standard mileage rate which is 65.6 cents per mile.
Pro Tip: Use an app or logbook to track your business mileage accurately.
5. Retirement Plan Contributions
As a small business owner, contributing to a retirement plan not only secures your future but also lowers your taxable income. Plans like SEP IRAs, SIMPLE IRAs, and solo 401(k)s offer significant tax benefits.
Pro Tip: Set up a consultation to see which plan will help you attain your goals.
6. Employee Salaries and Benefits
Wages paid to employees and associated benefits like health insurance are deductible. This also includes payments to freelancers or contractors, which are reported via Form 1099-NEC.
Pro Tip: Use payroll software to maintain accurate records of payments and withholdings.
7. Education and Training
Continuing education and training relevant to your business are deductible. This includes online courses, seminars, certifications, and even books or industry publications.
Pro Tip: Keep course completion certificates or invoices as proof of your investment in professional development.
