If you’re like most small business owners, you’re always looking for ways to save on your taxes. But did you know that there are a number of tax deductions that you might be forgetting about? In this blog post, we’ll take a look at 7 of the most common tax deductions that small business owners forget to write off, and how tracking these can save you big bucks at tax time.

 

1. Education and Workshops:

As a small business owner, it’s important to continuously educate yourself on the latest industry trends and developments. Luckily, the cost of attending educational workshops and seminars is fully deductible. Just make sure to keep all receipts and documentation handy come tax time.

2. Professional Gifts:

Did you know that the cost of giving professional gifts is also tax-deductible? Whether it’s a holiday gift for your best clients or a thank-you gift for a referral, as long as the value of the gift is under $25 per person, you can write it off come tax season. 

3. Local Transportation:

If you use public transportation to get around town for business purposes, those costs are 100% deductible. This includes everything from metro and bus fares to parking and tolls. Simply save your receipts and claim them come tax season. 

4. Mileage:

If you use your personal vehicle for business purposes, you can deduct a certain amount per mile driven. The current standard mileage rate is 62.56 cents per mile, so be sure to track your mileage throughout the year in order to maximize your deductions come tax time.

5 Credit Card Processing Fees:

If you accept credit card payments from customers, the associated processing fees are fully deductible. Simply request a statement from your credit card processor detailing the fees paid over the course of the year, and include them in your deduction total come tax season. 

6 Cell Phone:

If you have a separate cell phone line for business purposes, the entire monthly bill is 100% tax-deductible. Simply keep records of your monthly bills throughout the year, and include them in your deduction total when you file your taxes. 

7 Home Internet:

If you have broadband internet at home that you use for business purposes, a portion of that bill is also tax-deductible. The IRS allows small business owners to deduct up to $5 per month for home internet costs, so be sure to keep track of your monthly bills in order to maximize your deduction.                        

As a small business owner, it’s important to take advantage of every deduction available to you in order to minimize your taxes owed come April 15th. By tracking expenses such as education and professional gifts, local transportation, mileage, credit card processing fees, cell phone bills, and home internet costs throughout the year, you can ensure that you maximize your deductions come tax time – which will save you big bucks in the long run!