Meals are a highly overlooked expense in regards to small business owner’s tax return. Keeping track of all business interactions that are done over meals or during an event, lead to a considerable difference in your overall expenses. Try as much as possible to keep receipts, pay with a company card or at the least mark in a calendar when the events occurred. If you’re not sure what constitutes as a business meal, be sure to contact us.
Entertainment is another great deduction to get while doing business. Meetings with vendor, clients, employee’s or prospects could be done in a fun atmosphere and can be written off at the end of the year. As always, keep good records of these events. Meeting minutes not only remind you of what was discussed but also may cover you in case of an audit!
Planning your trips in accordance with your business could score you a 100% deduction on you return. What can you write-off? Airfare, hotel, rental cars, valet, taxi, trains, tolls, and more. Again make sure to keep records of each expense. Also don’t forget to discuss it with your CPA or trusted tax preparer to make sure you get an accurate picture of what’s acceptable.
Being at Home
Using your home to get work done is another good contribution to your deductions. There are several different ways to claim this on your return. Some calculations or more technical than others but may increase your deduction, maximizing the dollars that stay in your pocket.
There are many other deductions to consider as a small business owner, but the trick is moderation. Get with a CPA or knowledgeable and trusted tax preparer to give you set you up with a good strategy for claiming these deductions.