Tax Deductions Every Small Business Owner Should Know

There’s arguably nothing that excites small business owners like hearing the word small-business tax deductions. Small business tax deductions help businesses save a lot of money regarding taxation.

But the problem is that most business owners are unaware of the existing small business tax deductions or don’t just keep detailed records of their expenditures. Here are small-business tax deductions every small business owner should know:

Inventory

Certain businesses buy or manufacture products for resale. If this is the case, one can deduct the cost of their inventory or the total cost of goods sold. A business owner will be required to take stock of their merchandise at the start and end of every tax year to determine the price of products sold.

Insurance

Most businesses usually purchase some kind of business insurance. The cost of business continuation insurance, business owner’s policy, and business owner’s health insurance are all one hundred percent deductible. Other deductible insurance policies include liability coverage, property insurance, worker’s compensation costs, auto insurance, business interruption insurance, and malpractice insurance.

Utilities

Any utilities used within the business are 100 percent deductible. This includes things such as electricity, water, and telephone bills. But if you have a home office with a landline, the cost of the first landline doesn’t qualify as a deductible.

Auto Expenses

If a business owner has a vehicle or vehicles operating, they can deduct anything related to the vehicle expense. But they must produce recorded evidence to prove that the cars were used for business purposes.

Business Property Rent

If a business is being run on a rented property, a business owner can deduct the rental or lease payments from the taxes. Those who operate businesses from their homes can also check with IRS to find out which type of deductions they qualify for.

Office Supplies

Pens, paper, boxes, staples, etc., may appear small but can cost a business a considerable amount of money. It is good to keep records of such expenses to deduct them from annual taxes.

Office Furniture

Office furniture is also regarded as a form of office supplies. This means that they can qualify as deductibles in your taxes.

About John Gavin | Laguna Beach

John Gavin is known as a jack of all trades to the people he works with, but he is especially known for his exceptional sales and negotiation tactics. He's made a name for himself in both the software and hardware sales industry over the decades he's worked, as he's naturally talented when it comes to navigating an incredibly competitive and difficult such as this. When not at his desk, John absolutely loves to travel and spend time with his family. Nothing is better to John than learning about people from other cultures and countries, traveling to new destinations and learning as much as he can about the people there. He is also incredibly proud of his photography, a passion of his that he uses to make sure his family captures as many memories as possible.

Something that's helped John Gavin stand out among everyone else is his desire to help people in his community, namely the children. A particular passion that's stuck with John after college is his support of the Big Brothers and Big Sisters of America. He's keenly aware of how important it is to make sure that kids everywhere have the best role model possible so they can work to achieve the goals that they have for themselves. In keeping with this theme, John Gavin volunteers as a lacrosse coach with the Shooting Stars, Victory Lacrosse, and the Laguna Beach Little League. Learn more about John Gavin by visiting his websites, JohnGavinLagunaBeach.com, JohnGavinLagunaBeach.net and JohnGavinLagunaBeach.org!