Summer is heating up out there and for most small businesses that mean things are starting to really pick up. People get out and moving in the summer. They make deals, they travel for business, they upgrade their office spaces, and more. One thing that probably isn’t on your mind is taxes, even though the number one tax mistake made is the failure to claim deductibles! Don’t forget about keeping track of your deductions this summer!
Where is your business located this summer? If you have a home office remember that you can deduct it. Just make sure that your home office meets the requirements. It must be a space that solely devoted to your business.
If your children use the area to play then it doesn’t count. Also, using a laptop at your kitchen table won’t make the cut. However, you don’t have to devote an entire room to your home office, part of the room will work.
Thinking about upgrading to a bigger business space because your team is growing? Well, be sure to remember that you can deduct the cost of renting a space for your business, and you can deduct the interest on your mortgage loan if you own the space.
In the summer you’ll have to keep the office cool, but don’t sweat it because you can deduct the cost of utilities! Your AC bill, phone bill, internet bill, and more can be deducted. Just remember that for your home office your family landline can’t be deducted, but a 2nd line for business calls only can be. You can also deduct the percentage of your phone calls that are used for business calls from your mobile phone bill.
You know what your team might need to pick things up in the summer? The proper supplies! Materials such as pens, pads, sticky notes, and other various office supplies can be deducted. Cleaning supplies to keep your space nice and spotless can be deducted as well.
If you need furniture upgrades to make sure your team is comfortable and to make sure your office looks professional, don’t worry, you can deduct those costs as well. Also, you can deduct the cost of software subscriptions, making it easier to afford the tools that your team needs.
Gotta travel to make some deals? No problem, you can deduct the travel costs. Airfare, train tickets, and more can be deducted. Need a place to stay during your trip? That’s fine, deduct your lodging costs. Just remember while you’re wining and dining that you can only deduct up to 50% of the cost of meals and entertainment.
Deducting travel costs probably sounds awesome, but you can’t deduct the costs of a long daily commute. However, if you have to travel to work remember to keep up with the mileage because you can deduct that.
An unfortunate part of life is that sometimes things break and need maintenance. Nothing runs perfectly forever but needing a repair something isn’t to stress out about. If your equipment or something in your office needs to be repaired, keep calm and remember to deduct the costs.
Cheers To Your Business This Summer
Have a great summer quarter. We know that summer is a much busier time of the year for smaller businesses, but we know you can handle it as your business grows. Just remember to get tax breaks where you can by taking advantage of the deductions you qualify for.
For more tax blogs visit ExpressExtension.com and please share your advice about common tax deductions that businesses don’t take advantage of in the comment section below.