As a small business owner, you’re wearing many hats—visionary, leader, and problem solver. But when it comes to taxes, maximizing your deductions should be at the top of your priority list. Why? Because the money you save can be reinvested into your business or personal goals. Knowing which deductions apply to you is the difference between paying more than you should and keeping more of what you’ve earned.
Let’s dive into the deductions that can make a real difference for your bottom line.
1. Home Office Deduction
Do you use a dedicated space in your home exclusively for business? If so, you might qualify for the home office deduction. Whether you rent or own, you can deduct a portion of your rent or mortgage, utilities, and even maintenance costs. The key here is “exclusive use.” A desk in the corner of your bedroom doesn’t count.
2. Business Vehicle Expenses
If you use your car for business purposes, you have two options for deductions: the standard mileage rate or actual expenses. The standard mileage rate is straightforward—multiply your business miles by the IRS rate. If you go with actual expenses, you can deduct fuel, maintenance, insurance, and even depreciation. Keep detailed records to maximize this deduction.
3. Employee Salaries and Benefits
Paying employees is one of the costliest parts of running a business, but it comes with significant tax benefits. Salaries, bonuses, and even employee benefits like health insurance or retirement contributions are deductible.
4. Retirement Plan Contributions
Speaking of retirement, let’s not forget about you. Contributions to a SEP IRA, SIMPLE IRA, or solo 401(k) are not only smart for your future but also a powerful way to reduce your taxable income. The limits are generous, so take full advantage.
5. Professional Services and Education
If you’ve hired a tax strategist (wink) or a business coach, their fees are deductible. Continuing education, certifications, or training that enhances your skills in your current business is also fair game. This deduction is about growth and improvement, both for you and your business.
6. Marketing and Advertising
Every dollar spent to grow your brand is deductible. That includes social media ads, website design, logo creation, and even the cost of printing business cards. If it’s about putting your business out there, you can probably write it off.
7. Travel and Meals
Traveling for business? Your airfare, hotel stays, and even 50% of your meals while on the road can be deducted. Business meals with clients or prospects are also eligible, as long as you’re discussing work. Just keep those receipts!
8. Health Insurance Premiums
For self-employed individuals, health insurance premiums are deductible. This includes premiums for your spouse and dependents. It’s one more way to offset the cost of staying healthy.
A Strategy to Save More
Knowing about these deductions is just the first step. The real magic happens when you have a tax strategy tailored to your business. This is where I come in. At Mabry Tax Advisory Group, we specialize in finding opportunities like these to keep more money in your pocket.
Let’s make sure your business is structured to take advantage of every deduction available. Schedule a consultation, and let’s discuss how to clean up your books, organize your finances, and create a tax strategy that works for you.
Because at the end of the day, it’s not just about making money—it’s about keeping it.
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