Tax day came and went. The trauma will be felt for a while, but you’ll recover and forget all about it… until next year… When the next tax day comes along, it’s about time for you to be prepared and make it a priority to try to squeeze out as much as possible from your return so that you may keep your head above the water and a little beyond that.
Doing your taxes is about as much fun as repeatedly dropping a bowling ball on your foot. In other words, you’re normally not totally enthusiastic about it. If you hire help, that makes the process a whole lot easier. If you’re filing on your own, you’re in for a world of pain.
There are a lot of deductions you can take out next time you blow the dust from the side of the desk you normally do your taxes on. Here’s the friendly neighborhood advice from Hiscox, a company that provides several types of insurance, in a nutshell:
- Insurance Premiums - You can actually deduct some of the premiums from many different types of insurance, like healthcare and mortgage insurance. This is a deduction any small business can write off.
- Trade Publication Subscription Fees - The IRS has decided that trade publications are a part of business development. They *generally* let small businesses write this off, too.
- Furthering Your Education – If you’re finishing college or taking some other sort of higher education, you might want to have a look at what you can deduct from those expenses. The tax man is happy when you go back to school.
- Anything That Makes Your Building More Energy Efficient – You should really have a look at what tax deductions you can make from purchasing more eco-friendly equipment. You would kill two birds with one stone: You save on your energy bill and on your taxes. Could life get any better?
- Ads – Made an ad? Deduct it! It’s that simple. This counts as a business expense.
- Travel – This one’s a bit grey. They allow you to deduct travel expenses. However, you have to follow their guidelines on calculating such a deduction for ground travel. Air travel also gets its own publication (this one‘s from 2012). Thanks, IRS!
- Any materials – If you buy a pen, a calculator, a statuette of Elvis on a motorcycle (as long as your business is Elvis-related or something), new box cutters, scotch tape, or a new desk, all of this stuff’s deductible. Any materials you use (not just inventory and other stuff) factors into the whole business supplies ordeal.
Depending on your situation, it may or may not be difficult to calculate these deductions. But any penny you don’t pay to the Uncle is a penny you get to use to make your customers happier!