Earlier we wrote about four great business tax deductions you should think about as April 15th gets closer. Well, you can never have too much of a good thing, especially when it comes to tax deductions. So here are four more business tax deductions you might be eligible for this year.
Salaries and Contract Labor Costs
If your company has employees on the payroll, the wages you pay them are tax deductible. Similarly, if you have to hire contract laborers – like an accountant during tax season, for example – those expenses are tax deductible as well. Like any other deduction, ensure that you thoroughly document everything, especially when it comes to temporary contracted employees.
If you just established your business this past year, it probably was expensive. Fortunately, many of those startup expenses are tax deductible. If you incurred legal and licensing fees to get your business going, you can likely deduct those. Employee training and marketing costs associated with starting your business are deductible as well. Altogether, you can deduct up to $5,000 in startup costs.
Bad debts and defaults are terrible, but they can have a bit of a happy ending when April 15th rolls around. Many bad debts, like loan defaults and advanced wages paid to employees who skip out, are tax deductible. So document them thoroughly when they occur, and use them to lower your tax burden when you file this year.
When you’re looking for tax deductions your company is eligible for, you should always remember the state and local taxes you are paying; many of them are deductible on your federal return. Your state and local sales taxes are likely deductible; your property taxes may be, too. Finally, licensing and regulatory fees are often deductible for small businesses as well.
Keep these tax deductions in mind when you are preparing for tax day this year, they may come in handy. And remember to consult your accountant before claiming any deductions; that will help keep you out of trouble with the IRS. And, as always, keep VerifiaBill in mind as you are trying to optimize your profitability. Savvy companies know that VerifiaBill is the best tool to help their clients save money.