Call Us: (704) 534-2024


Request a Quote

Aug 18 2010

Small Business Tax Deductions – Top 5

Small Business Tax Deductions – Top 5

Read more articles at Bookkeeping Services of Charlotte, NC

              With tax season

just around the corner it is never too early to start thinking about available tax deductions. Small business tax deductions are important to Ensuring that you are getting all the return that is possible. Some tax deductions for small businesses are:

* Office furniture* Office equipment and supplies* Software and other subscriptions* Insurance premiums* Retirement contributions

In addition to these deductions there are a few other deductions that should be kept in mind while filing. Simply keeping good records throughout the year will help with these items and wants to make calculations at tax time less stressful.

Social Security

If you are self-employed or a small business you have to pay double the social security as you pay as both the employer and the employee. The good news is that you can claim back on your 1040th helped

Home Office

If you have a room in your house that is used exclusively for your small business it may be used as a deduction. The room can not be used for any other purposes to qualify. You can claim a percentage of rent or mortgage and utility bills based on the square footage of your office area in relationship to the square footage of the house.


Keep a journal in your vehicle of all small business related travel and expenses. At the end of the year this can be claimed one of two ways. It can either be deducted as a straight calculation of mileage times the allocated rate plus other expenses or it can be completed as a percentage of the total mileage on the vehicle plus expenses.

Travel and Gifts

hotel stays, travel on airlines or other forms of transportation and all gifts are deductible. Saving receipts is critical to be able to calculate this at tax time.

Children working for you

If you are the sole proprietor of your small business and you employ your own child under 17 that child can make up to, 850 and avoid paying any taxes. You will not have to pay Social Security tax and the salary you can write off as a business expense. This same policy applies if you and your spouse are together in partnership and there are no other partners. It does not apply if you are a corporation.

            This article was published at Bookkeeping Services of Charlotte, NC

Be Sociable, Share!

Tagged , ,

Leave a reply

Your email address will not be published. Required fields are marked *


Connect With Us
Subscribe to our Newsletter
Our newsletter contains valuable small business tips and resources.