A tax deduction is an expense that a company or a person can subtract from their overall income. Generally, a deduction is a form of incentive that comes as a result of expenses that are sure to produce additional income. Did you know there are plenty of items you can deduct from your taxable income… here are 10 purchases you might not have known were tax deductible.
- Home Office – If you use a dedicated room in your house only for business purposes and your home is the primary location of your business, you may be able to deduct a percentage of your house cost in correlation to your business expenses.
- Maintenance and Janitorial – If you use maintenance and/or janitorial services for your business these services can be deducted expenses.
- Advertising – Businesses can deduct some expenses used to promote themselves. Oftentimes reinvesting the saved money in more promotions!
- Business Meals – Business meals are tax deductible as long as the business keeps track of the date and location of the meal, the business relationship of the person dined with, and the total cost of the meal.
- Travel Expenses – Any travel expenses relating to a business trip are tax deductible. Including airfare, hotel, rental cars, and more!
- Phone and Internet – If it is required to use a phone and internet for your business those are tax-deductible expenses too!
- Child Care – If you have children under the age of 12, the costs of their care while you are at work are deductible.
- Education – Education costs that enhance and improve your business such as seminars, classes, workshops, and more are deductible.
- Office Furniture – Office furniture is considered an office supply so furnishing your office is also deductible.
- Employee Gifts – Employee gifts are also deductible, according to the IRS they are deductible up to $25 a year per employee.
Of course, before you start writing items off as tax deductions, always consult with a tax professional. At Hylen we offer individual and business tax services to ensure that you receive all the deductions that you are entitled to.