You work hard to run a successful business and, chances are, you want to maximize your deductions and tax burden. Don’t overlook these valuable deductions that can help you save come tax time.
1. Travel Expenses
Many of your travel activities that pertain to work are deductible. You cannot claim your regular commute, but you should keep records of mileage and expenses if you are required to go to an alternate office, visit clients, attend meetings or otherwise use your personal vehicle for work expenses. There are two ways to deduct these costs on a tax return:
- the standard mileage deduction
- actual costs of vehicle operation
A qualified tax professional can help you determine which method is best for you. Reacho out to The United CPA Association to find one near you.
2. Petty Cash
Because it is often used for small purchases, many companies overlook petty cash when tax time comes around. However, those small receipts can add up to a major deduction over the course of the year. Keep track of what is deductible and what is not to make the most of this break.
3. Fees and Charges
Any dues you pay for membership in organizations, clubs or trade associations can be deducted. So can fees for credit cards and bank accounts.
Keeping good records is the best way to make sure you are maximizing your business deductions. Talking to a tax professional can help you determine what costs you may have overlooked.