Small business owners looking to take advantage of income tax deductions should be familiar with the expenses they are entitled to claim. The following checklist can help you become aware of what constitutes a tax deductible expense.
It should be noted, however, that the complete list of deductible expenses is actually quite extensive and may vary depending on the unique circumstances of your business. Therefore, before making any decisions, you should consult with your accountant or professional tax consultant.
- Advertising and Promotional Expenses
- Banking Fees Including:check charges, monthly charges, bank wire fees or overdraft fees.
- Business Gifts
- Business-Related Education, such as seminars, classes, and educational tapes or video
- Charitable Contributions
- Conference and Convention fees
- Equipment and Furniture This includes the cost of the equipment, furniture, or vehicle purchased, as well as depreciation on old equipment, and lease payments
- Health-Insurance Premiums
- Insurance (for buildings, machinery or equipment)
- Interest and Fees (on money borrowed for the business)
- Losses Losses from theft, fraud, damage from natural disasters
- Meals and Entertainment
- Membership Dues
- Moving Expenses
- Office Rent Expenses
- Office Supplies
- Postage and Shipping Expenses
- Professional Fees Including: legal help, accounting and bookkeeping, architectural, business consulting and marketing consulting)
- Property Taxes
- Repair and Maintenance On the building, grounds, and equipment
- Retirement Accounts for self and employees
- Salaries of Employees
- Software Costs
- Taxes This includes: sales tax on items purchased for business usage, real estate tax on business property, employer’s share of employment taxes, excise taxes and, in some instances, state income tax
- Telephone and Telecommunications Expenses Including, Internet, television and other communication usage for business purposes
- Trade-show exhibition and/or attendance Including travel, meals, admission fees and costs of booths or exhibitions.
- Travel This includes: automobile expenses pertaining to business usage, using either actual costs of repair and gas or the standard mileage deduction, hotels, airfare, meals, laundry and business entertainment while on the road. You can also claim the costs of passports for self and employees when traveling for business purposes
- Utilities
