The small business owner does not have an entire accounting division at his or her disposal to offer tax advice and research the new tax laws each year. Alas, many business owners miss opportunities to save on the taxes they pay. While it is understandable that not all small business owners are tax experts, it can save a great deal of money by researching and asking a qualified CPA about all potential tax deductions.
Here are four secret tax advantages that many small business owners do not realize could benefit them.
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Business/Pleasure Trips
Did you know that you can deduct a trip from your small business taxes? While obvious business trips for seminars and sales presentations are deductible, many small business owners didn’t know that they can deduct a “pleasure” trip as long as they spend at least 51% of the time doing business. Schedule your vacation around meeting with clients or vendors, and you could enjoy tax deductions.
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Tax Credits
The US government has issued even more tax credits to help stimulate the economy and encourage small businesses to expand. You can get a tax credit for hiring a new employee, for buying additional capital, or even for updating your business to a “green” status. Check with your tax accountant for available tax credits that can save you money and help your business grow.
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Charitable Contributions
Donations of money or assets to qualified non-profit or charitable organizations can help reduce a small business tax burden. Offer to give money to a local charitable organization. Help an arts or educational organization. And remember, a donation doesn’t have to be money. Consider donating an older company vehicle or other equipment.
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Commuting Mileage
If you keep a home office as well as a separate “business” office, did you know you could be deducting all your mileage to and from work? A simple loophole in the tax code regarding mileage says that you can deduct all miles driven between two business locations. This means you would need to do a little work at your “home” office first thing of the day, drive to “work,” then do a little follow-up work back at your “home” office when you return. This is a great way to recoup your commuting expense as a tax deduction.
