Employee pay, travel expenses, business equipment and utilities are some of the common tax deductions for small businesses, according to HowStuffWorks. Business owners should check with their accountants or tax preparers to be sure they are taking all the deductions for which their businesses are eligible.Continue Reading
Employee salaries and wages can be a large deduction for small businesses; however, they only apply if business owners are paying reasonable wages based on federal guidelines, notes HowStuffWorks. Travel expenses that are related to the business are also tax-deductible, though people must be careful to separate out any personal expenses incurred on business trips. Travel expenses include things such as air or train fare, lodging and baggage fees.
The Internal Revenue Service allows small businesses to deduct the cost of equipment through Section 179 of the U.S. tax code, states HowStuffWorks. There are rules and restrictions around the types of equipment that are deductible and the allowable deduction amounts, so business owners should consult tax professionals before claiming these write-offs. Small businesses can take deductions for utilities, whether the business is run from home or an office space. People writing off utilities for a home office can only deduct the percentage of bills that are related to their office spaces, not their entire homes.Learn more about Taxes