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Small Business Tax Deductions

We know it. You know it. Tax deductions for a small business are complicated. But making sure a business is tracking and applying all deductions is important for overall financials and sometimes even profitability. The last thing you want to do is miss deductions the business is eligible for. We’ve put together an example of a small business and outlined options for the tax deductions. For this example, we will be using Spotlight.Vegas, a ticketing business.

Note: There is no specific master list of tax deductions for a small business, and with every profession there are differences. The general rule is if something is “ordinary and necessary” to running your business, it is a tax-deductible expense.

1. Qualified Business Income

At the most basic level if you own a small business a certain percentage of the income can be a deduction. This amount varies depending on the total amount of income, so connect with a tax professional to get the most accurate amount for this deduction.

2. Office/Rent

The costs associated with renting an office, space, or retail location to operate your business is fully deductible.

3. Advertising & Marketing

From business cards to Facebook ads. Anything you use to promote your business and land new customers is 100% deductible.

4. Office Expenses & Supplies

Pretty much anything used to operate the business in the office setting applies here.

5. Utilities

Similarly any utilities needed to keep the business operating are a deduction. This might be electricity for the office or costs to host a website.

6. Travel

Some business owners spend a lot of time traveling to do business. The great news is these items are tax deductible for businesses.

7. Salaries & Employee Benefits

If you have employees, the amounts you pay them are deductible expenses. This also applies for freelancers and contract workers.

8. Insurance

If your business operations require insurance, license, or professional fees and costs, they too would also be deductions for taxes.


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