For small business owners, every dollar counts. While you work hard to make more profits from the business, your income and self-employment taxes can be still too high for you to afford. Carefully review your tax return and check if you’ve deducted all expenses qualified for deductions. Surprisingly, you may still miss a few.
Here is the list of commonly overlooked business expenses. The list is not intended to be applicable to everyone.
– Advertising & promotional giveaways
These include flyers, catalogs, etc
– Audio, videotapes and DVDs to improve business skills.
– Bank service charges on business accounts
Monthly charges, penalties & fees, check printing and writing fees are deductible.
– Business association dues
I.e., dues for professional associations are deductible Under the Other Expenses category.
– Business gifts
You can deduct up to $25 to any one recipient per year.
– Business-related magazines and books
Books, subscriptions to magazines, newspapers, and other publications can be deducted.
– Casual labor and tips
– Casualty and theft losses
When your business-related property is destroyed or damaged by a natural disaster or theft, you can deduct the losses.
– Coffee, beverage and snack services
These can be deducted under the Office Expense category.
Commissions paid to referrals, salespeople, or companies are deductible.
– Computer software and applications used for business
– Consultant fees
Professional fees paid to accountants, attorneys, or web programmers are deductible. These include administrative costs related to the professional services.
– Costs of entertaining clients
– Credit bureau fees
– Education to enhance business skills
– Interest on business credit cards or loans
– Office supplies
Office supplies used to operate business is deductible. Remember office supplies are different from supplies for your products. Supplies to produce business products are included in costs of goods sold.
– Online computer services related to business
Fees paid to internet service provider can be deducted.
– Parking and meters
– Petty cash funds
A petty cash fund is a small fund of money reserved for incidental expenses, i.e., money used for office supplies.
– Postage, freight, delivery, and post office box charges
– Promotion and publicity
– Repairs of business equipment
– Seminars and trade shows
– Taxi and bus fare
– Telephone line for home business
A separate telephone line for home business is deductible.
– Telephone calls away from the business