April 15th is coming around faster than ever, especially if you’re a business owner. And one thing is certain (besides the standard death and taxes): you need to take advantage of every single tax deduction you can. Deductions can help reduce your overall tax burden, and ultimately make your company more profitable for the year. Here are four great tax deductions you should take advantage of in 2019.
The Home Office Deduction
If you use a room in your house regularly and exclusively to support your small business, you may qualify for a home office tax deduction. The home office deduction allows you to deduct five dollars per square foot of office space in your home, for a maximum of 300 square feet. Ensure you read the rules, and check with your accountant to see if your company is eligible for this great deduction.
You probably grumble about paying your company’s phone and light bills each month. But hopefully, you saved all of your receipts because utility bills are tax deductible. If you have a home office, and a phone line dedicated exclusively to your business, that may be deductible as well.
You can compute the annual loss in value of your company’s physical equipment, such as vehicles and computers. This loss, called depreciation, is tax deductible. There are different ways to compute depreciation; your accountant can determine the way that is most advantageous for your company.
Does your business require you or your employees to travel? While business travel is expensive, it is also tax deductible. So save those airfare, rental car, and lodging receipts, you can deduct them from your taxes when April 15th comes around.
Remember all these deductions when you file your taxes this year, they can help lower the tax bill to the feds considerably. And always remember the team here at VerifiaBill, too. We’re here to help you save money on insurance and make your life easier!