Tips for Deductibles that can Lower Taxes for Small Businesses

The cost of taxes can be a shock for a small business, but the proper deductions can lessen the sting. Here are some tips for things you can take off your taxes as business expenses if you have the proper documentation to back them up:

Office equipment is a basic necessity, and much of it can be deducted. However, not all of it can be taken off as a one-time write-off. Some items have to be taken off over several years as they depreciate, instead. Talk to an accountant if you’re not sure which method applies to a particular item.

Software is often necessary for today’s businesses. Any business-only software can therefore be taken off.

The cost of insurance is often deductible. Along with standard forms of business insurance, your company’s contribution to employee health insurance can be written off.

If you’ve upgraded your company’s building or equipment to be more energy-efficient, you can claim some tax credit.

Charitable contributions can be written off in some circumstances. This applies to donations of goods or services as well as cash.

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