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- September 1, 2023
Top 10 Tax Saving Tips for Small Businesses in 2023
Running a small business comes with its unique challenges, and understanding tax deductions is among the most significant ones. But fret not! We are here with the top 10 tax-saving tips for small businesses that can help you save big in 2023.
Let’s take a quick look.
Top 10 Tax Saving Tips For 2023 from CROWNGLOBE Experts
Tip 1: Business Meals
50% of food and drink purchases related to your business can be deducted. Ensure to keep records of the date, location, attendees, and the business relationship they have with your company. Document the total cost of the meal as well.
Tip 2: Work-Related Travel Expenses
All expenses related to business travel, including airfare, hotel stays, car rentals, meals, and more, can be written off at tax time. Your business travel must be necessary, take you away from your usual business location, and be longer than a standard workday.
Tip 3: Work-Related Car Use
If your car use is for business purposes, you can write off all associated costs. If the car is used for both personal and business purposes, only the expenses related to the business usage of the vehicle can be deducted.
Tip 4: Business Insurance
The cost of your business insurance can be deducted from your tax return. If you run your business from home, you can deduct a part of your renter’s insurance costs as part of your home office write-offs.
Tip 5: Home Office Expenses
If you work from home, you can deduct $5 per square foot of your home used for business, up to 300 square feet. Your work area must be exclusively for business and should be used regularly.
Tip 6: Office Supplies
Office supplies used for business within the year they are purchased can be written off. This includes computers, work-related software, paper, printers, and shipping costs.
Tip 7: Phone and Internet Expenses
If vital to running your business, phone, and internet expenses can be deducted. However, if used for both personal and business purposes, only the percentage used for business can be written off.
Tip 8: Business Interest and Bank Fees
Interest charged on business loans and credit cards can be deducted, as well as any associated fees on your business bank account and credit card.
Tip 9: Professional Service Fees
Professional service fees related to your business, such as legal, accounting, and bookkeeping services, can be deducted. This also applies to any accounting or bookkeeping software used for business.
Tip 10: Advertising and Promotion
Expenses related to promoting your business, including digital and print advertising, website design, and business cards, can be fully deducted.
Don’t Miss Out On Your Deductions
Knowing these tax-saving tips and understanding the potential deductions can lead to significant tax savings for your business.
However, always remember that it’s essential to maintain accurate and detailed records to justify your deductions. That’s where specialists like CROWNGLOBE come in. Here, we assist businesses in claiming the maximum deductions possible within the legal frameworks.
So in case, you are looking for a partner that can help you with your deductions, we are here to help. Just get in touch, and our experts will chart out a perfect plan for you.
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