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Best Small Business Tax Deductions for 2021
As a small business owner, you often ask yourself, How can I maximize my return? Reducing your tax payments is possible if you know where to look.
These 5 tax deductions can help you accomplish your 2021 tax goals:
The pandemic drastically changed the way small businesses operate. Remote work has become the new norm and home offices became a necessity.
Using your home for business can provide tax relief to small business owners. According to IRS Publication 587, the percentage of your home’s square footage used for business-related activities can be tax deductible.
Do you have advertising expenses for your small business? The IRS allows you to deduct any advertising expenses that are directly related to your business.
Any money you pay towards the usage of a property that you don’t own is considered rent.
According to IRS Publication 535, if you are renting a business location, the rental payments are deductible as a business expense.
Expenses for training pertinent to your business are deductible. For example, a small business owner in the trucking industry getting and maintaining a CDL license qualifies.
Employee training expenses are deductible as well.
The IRS allows small business owners to deduct startup costs for up to $5000 in the first year of business. This deduction may include travel-related expenses to meet clients and investors, advertising and professional fees.
We can help you determine the proper deductions to maximize your tax return this 2021:
Do you know how much you will overpay in taxes to the IRS this year?
We’ve been helping our small business clients implement tax planning to help them reduce their tax liability.