We are in the heart of tax season and whether you are an enterprise-level, small business or somewhere in between, you are most likely hoping to get the most savings as possible. Often businesses do not think they qualify for deductions or are unaware of the possibility of savings. We culminated the top tax deductions that companies should consult their accountant or CPA about to maximize their savings and increase their bank account.
As tax season approaches, businesses should be reminding themselves to think about their Adjusted Gross Income throughout the year. Consider any and all business expenses for tax reasons. The more tracking of expenses they do throughout the year, the better.
If you did not track your expenses well enough over the past year, it is the perfect time to start now. You will need to keep all of your receipts for proper deductions.
Here is our list of the most overlooked tax deductions:
- Contributions to Profit-Sharing or Pension Plans
- Energy Investment Tax Credits for Owned and Rented Space
- Home Office Deduction
- Office Supplies
- Bad Business Debt (if the amount owed was previously included in gross income)
- Business Travel Expenses
- Charitable Contributions above $250
- Start-Up Expenses up to $5,000
- Inventory (if the company uses the cash method of accounting and considers inventory items as supplies)
- Accounting Fees for Preparation of Taxes
- Software
- Furniture
- Office Equipment
- Advertising and Marketing (directly related to the business)
- Auto Maintenance and Mileage
- Utilities
- Employee Education
- Banking Fees
- Cleaning and Janitorial Services
- Gifts for Customers ($25 deduction limit)
- Health Insurance
- Employee Wages
- Moving Expenses
- Workers’ Compensation Insurance
- Parking Fees
- Losses Due to Theft
- Internet Service
- Management Fees
- Credit Card Convenience Fees
- Business Association Membership Fees