At Warner Tax Group, we work with many small business owners who are busy running their businesses but may be missing out on valuable tax savings. Every deduction counts when it comes to reducing your tax liability, yet many entrepreneurs overlook lesser-known deductions that could help them save significantly. Here are a few key deductions to keep on your radar: 1. Home Office Deduction
If you use part of your home exclusively for business, you may qualify for the home office deduction. This deduction applies whether you own or rent, and it includes a portion of your rent, mortgage interest, utilities, and even repairs. The IRS offers both simplified and detailed methods to calculate this deduction, so you can choose the one that maximizes your benefit. 2. Startup Costs The IRS allows new businesses to deduct certain startup expenses up to $5,000 in the first year, such as marketing, office supplies, and legal fees. If your startup costs exceed this amount, you can amortize the remaining expenses over a 15-year period. 3. Vehicle Expenses If you use your personal vehicle for business purposes, you can deduct either the standard mileage rate or actual vehicle expenses like gas, insurance, and maintenance. Keeping a mileage log can make this deduction easier to claim and more accurate. 4. Professional and Educational Expenses Ongoing education, certifications, and professional memberships that help you stay current in your industry are deductible. This includes seminars, online courses, and memberships to industry associations. 5. Business Interest Expenses Interest on loans or credit cards used for business purposes is deductible. If you’re using a line of credit or business loan to fund growth, be sure to track these expenses to maximize your deduction. Taking full advantage of these deductions can lower your tax bill and keep more money in your business. Navigating tax deductions can be complex, and missing one could mean paying more than necessary. To make sure you’re getting the maximum tax benefit, reach out to us at Warner Tax Group for a consultation. We’re here to help you take advantage of every opportunity to reduce your tax liability and grow your business!
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