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21Overlooked
Business Tax Deductions
That You Need To Know
In most cases, small business owners are simply not aware
of the many tax deductions out there for small businesses.
Do yo...
First of all, let’s look at the deductions
you can claim for simply operating your business.
Deducting your business expen...
As a small business you can deduct up to $5,000 for
both start-up and organizational costs from your tax bill.
This covers...
Most businesses will take out
some form of insurance.
The cost of the business owner’s health insurance,
business continua...
If you have a car for business purposes,
you can usually deduct anything
considered a car expense.
6. Auto Expenses
If you...
Paper, boxes, pens, staples…
they may be small, but they
all cost money (which you can
deduct from your taxes).
8. Office S...
Entertaining clients with meals and events?
This too can be deducted if necessary to your business.
12. Business
Entertain...
If you have a small business loan, you’ll make
interest payments on what you’re borrowing from the lender.
This might come...
Next, we'll break down the tax deductions
you can claim on your employee or contracted labor expenses.
Deducting your empl...
In general, your employee wages
are fully deductible.
17. Employee
Salaries
You can also deduct certain employee
benefit pr...
Do you use independent contractors
or freelancers as a part of your labor force?
The cost of hiring contracted labor
is fu...
All of these options are there
for your small business,
but it’s up to YOU to use them.
Stay organized!
: 21 Overlooked Sm...
Small Business Loans Made Easy
www.fundera.com
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21 Overlooked Business Tax Deductions That You Need to Know

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When tax season comes around, how much are you saving on tax
deductions for your small business?

More importantly, do you know how much you could be saving for your business if you took advantage of all the tax deductions available?

As it turns out, you could be leaving hundreds—even thousands—on the table when you’re paying your taxes each year.

In most cases, business owners just aren’t aware of the many small business tax deductions out there. In other cases, they just aren’t keeping detailed records of their business expenses or don’t want to spend the time and effort itemizing expenses and crunching numbers.

For whatever reason, lots of small businesses overpay their taxes
each year by not deducting their business expenses.

If you think this might be the case for your small business, use this
guide to make sure you’re capitalizing on the most overlooked (but
valuable) small business tax deductions.

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21 Overlooked Business Tax Deductions That You Need to Know

  1. 1. 21Overlooked Business Tax Deductions That You Need To Know
  2. 2. In most cases, small business owners are simply not aware of the many tax deductions out there for small businesses. Do you know how much your business could be saving in tax deductions? : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  3. 3. First of all, let’s look at the deductions you can claim for simply operating your business. Deducting your business expenses : 21 Overlooked Small Business Tax Reductions You Need to Know
  4. 4. As a small business you can deduct up to $5,000 for both start-up and organizational costs from your tax bill. This covers any costs paid while you create or investigate creating an active business. 1. Going Into Business Some inventory-based businesses will manufacture products or purchase them for resale. If this is your business model, you can deduct the cost of your inventory, or the cost of the goods you sell. 2. Inventory (Cost of Goods) Any utilities that you use for your business are fully deductible! This includes things like water, power, trash, and telephone bills. 3. Utilities : 21 Overlooked Small Business Tax Reductions You Need to Know
  5. 5. Most businesses will take out some form of insurance. The cost of the business owner’s health insurance, business continuation insurance, and business owner’s policy are all 100% deductible. 4. Insurance If you rent your business property, you can deduct your lease payments from taxes. Alternatively, if you run your business from home, you can also run an eligibility test with the IRS to see if you are entitled to any deductions. 5. Business Property Rent : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  6. 6. If you have a car for business purposes, you can usually deduct anything considered a car expense. 6. Auto Expenses If you lease equipment or machinery for your business you can fully deduct these costs. This can be anything from printers and copiers, to vans and trucks. 7. Rent on Equipment and Machinery : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  7. 7. Paper, boxes, pens, staples… they may be small, but they all cost money (which you can deduct from your taxes). 8. Office Supplies If you’ve bought or downloaded software for your business, this can be deducted. 10. Software Subscriptions The cost of any furniture you buy for your office can also be deducted! 9. Office Furniture As long as you can prove they’re related to your business, you can claim back any money spent on ordinary advertising and marketing purchases. This includes things like billboards, business cards, and Yellow Pages ads. 11. Advertising & Marketing : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  8. 8. Entertaining clients with meals and events? This too can be deducted if necessary to your business. 12. Business Entertainment If you’re frequently on the go, you should definitely look into deducting your travel expenses. 13. Travel Expenses : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  9. 9. If you have a small business loan, you’ll make interest payments on what you’re borrowing from the lender. This might come as a surprise, but those interest payments are tax deductible. 14. Interest If you’ve ever lent money to an employee or vendor without receiving it back, you can claim that back as ‘bad debt’. You just need to be able to prove that it was business debt, rather than personal debt. 15. Bad Debt As strange as it sounds, the taxes you incur from just running your business are deductible. These taxes might be federal, state, and local income, real estate, employment, or sales taxes. 16. Taxes : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  10. 10. Next, we'll break down the tax deductions you can claim on your employee or contracted labor expenses. Deducting your employee and labor expenses : 21 Overlooked Small Business Tax Reductions You Need to Know
  11. 11. In general, your employee wages are fully deductible. 17. Employee Salaries You can also deduct certain employee benefit programs, like education assistance, dependent care assistance, life insurance adoption assistance, or qualified retirement plan accounts. 18. Employee Benefit Programs Employee gifts are 100% deductible up to $25 per year, per employee. 19. Employee Gifts : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  12. 12. Do you use independent contractors or freelancers as a part of your labor force? The cost of hiring contracted labor is fully tax deductible. 20. Contracted Labor If you ever need to hire a legal or accounting professional for your business, you can deduct 100% of their fees. 21. Legal and Professional Fees : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  13. 13. All of these options are there for your small business, but it’s up to YOU to use them. Stay organized! : 21 Overlooked Small Business Tax Reductions You Need to Know: 21 Overlooked Small Business Tax Reductions You Need to Know
  14. 14. Small Business Loans Made Easy www.fundera.com

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