SlideShare a Scribd company logo
TOP SMALL BUSINESS
TAX DEDUCTIONSTIPS
https://farahatco.com/blog/small-business-taxation-tips/
Equipment Purchases
• Start-up businesses need to get the latest technology, Equipment expenses such
as desktop, printers, and even Business vehicles are tax-deductible, up to a
definite amount. Depending on the equipment item, you can deduct the full cost
in the year of purchase, or split it between several years. So don’t be afraid to get
the technology you need to perform necessary business tasks. Also, if you only
having a single car, you can’t explain that as purely business vehicles, so don’t try
to use the fact you have a business to pad your personal belongings. If you’re
going to acquire a business vehicle, make sure it is only used for business.
Home IntegratedOffice
Fear of an audit should never keep you from claiming legitimate deductions. Just make sure
that you keep well-organized books, and that you can prove your deductions are indeed for
business expenses and you will be fine.
Here are some indicators when it comes to home offices.
• Make sure that your office is distinct from your living area.There should be a clear line with
the home premises and your business,Auditor from auditing firms in Dubai would not
believe that it is not exploited for personal use as well.The burden of proof will be up to
you, dedicate your computer and had a separate one for family use.
• Measure your business work area and divide by the square footage of your home.That
fraction is the fraction of rent, debt, utilities, taxes, and maintenance you can claim.
Travel Costing
• Subsequently, travel can be required for business accomplishment and expansion;
many of the expenses are fully tax-deductible. Our tax tip on travel takes note of
expenses like airfare, hotel fees, rental and mileage, Food is only deductible up to
50%, probably because the government figures you would have to eat whether
you were travelling or not.
These are the points when deducting
business travel expenses:
• You can take your family with you, separate the costs for you, and only those that
are business-related can be deducted.
• When taking clients our on a meal, be sure to keep tabs.Those costs are 50%
deductible if you write the reason for the meal, e.g. “Investment meeting with a
CEO of Apple”. So when the auditor comes, you are prepared.
• A conference is deductible if it is related to your business, if your purpose for going
is to earn money then that is a legit claim.
• Conference fees are deductible as long as the conference is directly useful for your
business. If it’s a conference connected to your industry or will help you run your
business more efficiently, then it probably qualifies. If the purpose for going is to
earn money on the side, then it’s not as influential to you
Cont.
• Business finances, especially the taxes, it’s important to preserve your receipts and
details about the reason for acquisitions. It will also save you a lot of trouble if you
are being audited, and it will help you keep the harmony of mind that your
finances aren’t going to get your business in trouble.The more systematized your
finances are, the more you can concentrate on making your business successful.
Cont.
• The cost of running and sustaining a business is great, but many of those costs can
be lessened by filing your taxes intelligently. It’s never profitable to leave money
anywhere else. Do your studies, take the time to do your taxes correctly and
absolute, and put the money you excluding back into your business.
Contact Us
• Address: IBIS Hotel Building – Office Entrance 5th Floor, Office No.: 5001, Rigga
Road Dubai, P.O.Box 4647, U.A.E
• WhatsApp Only: +971 52 6922588
• Mobile: +971 55 370 1232
• WhatsApp / Call: +971 55 4828368
• Telephone: +971 4 2500251
• Email: sales@farahatco.com

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Top small business tax deductions tips

  • 1. TOP SMALL BUSINESS TAX DEDUCTIONSTIPS https://farahatco.com/blog/small-business-taxation-tips/
  • 2. Equipment Purchases • Start-up businesses need to get the latest technology, Equipment expenses such as desktop, printers, and even Business vehicles are tax-deductible, up to a definite amount. Depending on the equipment item, you can deduct the full cost in the year of purchase, or split it between several years. So don’t be afraid to get the technology you need to perform necessary business tasks. Also, if you only having a single car, you can’t explain that as purely business vehicles, so don’t try to use the fact you have a business to pad your personal belongings. If you’re going to acquire a business vehicle, make sure it is only used for business.
  • 3. Home IntegratedOffice Fear of an audit should never keep you from claiming legitimate deductions. Just make sure that you keep well-organized books, and that you can prove your deductions are indeed for business expenses and you will be fine. Here are some indicators when it comes to home offices. • Make sure that your office is distinct from your living area.There should be a clear line with the home premises and your business,Auditor from auditing firms in Dubai would not believe that it is not exploited for personal use as well.The burden of proof will be up to you, dedicate your computer and had a separate one for family use. • Measure your business work area and divide by the square footage of your home.That fraction is the fraction of rent, debt, utilities, taxes, and maintenance you can claim.
  • 4. Travel Costing • Subsequently, travel can be required for business accomplishment and expansion; many of the expenses are fully tax-deductible. Our tax tip on travel takes note of expenses like airfare, hotel fees, rental and mileage, Food is only deductible up to 50%, probably because the government figures you would have to eat whether you were travelling or not.
  • 5. These are the points when deducting business travel expenses: • You can take your family with you, separate the costs for you, and only those that are business-related can be deducted. • When taking clients our on a meal, be sure to keep tabs.Those costs are 50% deductible if you write the reason for the meal, e.g. “Investment meeting with a CEO of Apple”. So when the auditor comes, you are prepared. • A conference is deductible if it is related to your business, if your purpose for going is to earn money then that is a legit claim. • Conference fees are deductible as long as the conference is directly useful for your business. If it’s a conference connected to your industry or will help you run your business more efficiently, then it probably qualifies. If the purpose for going is to earn money on the side, then it’s not as influential to you
  • 6. Cont. • Business finances, especially the taxes, it’s important to preserve your receipts and details about the reason for acquisitions. It will also save you a lot of trouble if you are being audited, and it will help you keep the harmony of mind that your finances aren’t going to get your business in trouble.The more systematized your finances are, the more you can concentrate on making your business successful.
  • 7. Cont. • The cost of running and sustaining a business is great, but many of those costs can be lessened by filing your taxes intelligently. It’s never profitable to leave money anywhere else. Do your studies, take the time to do your taxes correctly and absolute, and put the money you excluding back into your business.
  • 8. Contact Us • Address: IBIS Hotel Building – Office Entrance 5th Floor, Office No.: 5001, Rigga Road Dubai, P.O.Box 4647, U.A.E • WhatsApp Only: +971 52 6922588 • Mobile: +971 55 370 1232 • WhatsApp / Call: +971 55 4828368 • Telephone: +971 4 2500251 • Email: sales@farahatco.com