Business Expenses to Track This Year for Tax Deductions

Working with small to medium-sized business owners all year, the most frequently asked question we hear is, “Can I deduct that?”

eagle ARunning a business is an expensive undertaking and the old adage is true, “It takes money to make money.” Legitimate tax write-offs are critical to growing your business and maximizing your company’s bottom line.

Because they are dealing with a government agency known for its attention to minutiae, it usually comes as a shock to entrepreneurs when they learn that the IRS doesn’t offer a standardized check-list of approved business deductions. The principal  guideline the IRS uses is: you can deduct any expense incurred in the production of income.

Even if you’ve been in business for years and are conditioned to considering the tax implications of every purchase, it’s always a good idea to discuss your expenditures with your CPA or tax advisor to make sure you’re not overlooking anything.

Especially since 2018 is the first year we’re working with the Tax Cuts and Jobs Act. we urge all our clients to keep track of all their business-related expenses and discuss them with us to make sure everything is handled and reported correctly.

While the following is not an exhaustive list of every imaginable business-related expense, you can use it as a thought-starter to review the money you spent during the year, so your business could generate income.

Not every item on the following list will be tax deductible this year—or may be only fractionally deductible—but we urge our clients to give us the details of these expenses (and any others you feel fit the broad criteria) to see whether they qualify to reduce your taxable income.

Possible Deductions for Taxes

Accounting fees
Advertising
Amortization
Auto expenses
Bad debts
Banking fees
Board meetings
Building repairs and maintenance
Business association membership dues
Business travel
Charitable deductions (business)
Cleaning/janitorial services
Collection Expenses
Computers and tech supplies
Consulting fees
Continuing education
Conventions and trade shows
Costs of goods sold
Credit card convenience fees
Depreciation
Dining during business travel
Discounts to customers
Employee education and training
Employee wages
Entertainment for customers and clients
Equipment
Equipment repairs
Franchise fees
Freight or shipping costs
Furniture or fixtures
Group insurance
Health insurance
Home office
Interest
Internet hosting and services
Investment advice and fees
Legal fees
License fees
Losses due to theft
Management fees
Materials
Maintenance
Mortgage interest on business property
Moving
Newspapers and magazines
Office supplies and expenses
Outside services
Payroll taxes
Parking and tolls
Pension plans
Postage
Publicity
Real estate-related expenses
Rent
Research and development
Retirement plans
Royalties
Safe-deposit box
Safe
Software and online services
Storage rental
Subcontractors
Taxes
Telephone
Utilities
Website design
Workers’ compensation insurance

And, remember: the more documentation you have regarding expenses, the stronger your claims for legitimate deductions.

Author: hunterbrowncpa

Business Coach, Entrepreneur and CPA

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