Don't Overlook These Small Business Tax Deductions

TYPICAL SMALL BUSINESS TAX EXPENSES

1. ADVERTISING. Literature, price lists, catalogues, display and
classified ads in newspapers, internet, radio, T.V, etc.
Internet advertising expense and sales promotion such as
search engine placement, pay per click advertising, and
e-zine mailing list hosting services.

2. BAD DEBTS. Any due and non-collectable based on actual
expenses incurred.(Note:For accrual method of accounting only)

3. BANK CHARGES. Service fees and checking costs, including
check imprinting, overdraft protection, and any costs and
penalties from late charges and insufficient funds.

4. BUSINESS GIFTS. Items given to any prospect, customer or associate, up to $25 annually per recipient.

5. CAR AND TRUCK EXPENSE. If only one car , use actual expense or mileage method. If two or more cars or if leasing, use actual expense method. Mileage method replaces all actual operating and fixed expenses including depreciation.

6. CLIENT ENTERTAINMENT. Extra activities such as catering, and special refreshments for business related birthday and anniversary parties. Tickets for ball games, sporting events, plays, movies, etc., purchased to entertain business clients.

7. CONTINUING EDUCATION. All business related schooling and educational costs. Producing testing, research and development.

8. CONTRIBUTIONS. C Corporations only. S Corporations or Sole Proprietorships; report on Schedule A of Form 1040.

9. CONVENTIONS AND SEMINARS. Costs of attending or participating in meetings and rallies.

10. COMMISSIONS. Fees paid to others for transacting business, a percentage paid to another responsible for a business transaction, or bonuses paid to distributors and agents.

11. DEMONSTRATIONS AND TRAINING. Portion of groceries used for business. Products used for demonstration purposes.

12. DUES AND PUBLICATIONS. Newspaper and magazine subscriptions and purchases relative to business from newsstands and subscriptions.

13. EDUCATIONAL SUPPLIES. Books, records, tapes and any materials used self improvement pertaining to business.

14. FIELD ACCOMMODATIONS. Other travel and lodging expenses.

15. FREIGHT. Handling charges, costs of shipments sent and received, including gifts and special carrier delivery such as UPS, Parcel Post, Federal Express, DHL, etc..

16. INCENTIVES AND AWARDS. Pins, plaques, applicable production discounts, rewards, costs of contests and prizes -- anything expended to generate sales, including raffles, drawings and door prizes.

17. INSURANCE. Business portion of homeowner's insurance for casualty, fire,theft, property damage, and liability. Subject to home office limitations. Employee Health Insurance.

18. INTEREST. Business portion of home mortgage interest and interest on business loans. Interest on business related expenses from credit cards.

19. LEGAL AND PROFESSIONAL SERVICES. Payment for services such as attorneys and accountants.

20. OFFICE SUPPLIES. Stationary, pencils, pens, paper clips, envelopes, file folders, erasers, order forms, bookkeeping and art supplies. Computer and printer paper, small equipment items such as pocket calculators, electronic organizers, staplers, paper punches, etc.. Also diaries, ledgers,tablets, message pads, etc..

21. PARKING. Meters, space fees, and lot costs for business purposes.

22. POSTAGE. Stamps for all correspondence, newsletters, IRS audits, Christmas cards, bills, and all costs of certified, registered and insured mailings.

23. PRINTING AND REPRODUCTION. Reproduction of newsletters, fliers, brochures, business cards, business stationary and coupons.

24. RENT. Applicable business rent, meeting rooms and trailers, and all lease costs.

25. REPAIRS. Business portion of painting, flooring, resurfacing, concrete fixing, new glass, hardware supplies, tools, paint rollers. Repairs of business computer, VCR and other office equipment.

26. SALES EXPENSES. Costs associated with and pertaining to search for new clients and personnel.

27. SAMPLES AND DISPLAYS. Service of Product displays or demonstrations and new products used for promotion and samples.

28. SECURITY. Business portion of Home Alarms (smoke detectors and fire alarms), car alarms, padlocks, electronic sensors, monitoring cameras, and private patrols.

29. STORAGE. Costs of warehouses, lockers, garages, dock fees
and hanger space for business purposes.

30. SUPPLIES. Additional items such as linen, coffee makers,
cups, napkins, paper towels, interior decorating items,
special lights, blackboards, and easels, whiteboards, visual
aids, usual office supplies, items for client comfort.

31. TAXES. Business portion of real estate taxes, sales and
excise taxes. (Do not include sales tax of inventory
purchased if Purchases are gross figures). Payroll and
Business License taxes.

32. TELEPHONE. Cost of second telephone or fax line in home
office dedicated to business use. If only one line is used,
the cost of telephone company monthly service charges and
personal calls are not deductible. Business portion of cell
phone, voicemail, pager, and pay phone charges.

33. TRAVEL. Traveling costs such as a plane, train, taxi, and
bus fare. Rental cars, lodging, tour and guide fees, and
special arrangements (to be reimbursed with appropriate
documentation submitted to business entity when expense is
paid).

34. UTILITIES AND TELEPHONE. Business portions of natural gas
and electricity, heating oil, water sanitation.

OTHER DEDUCTIONS

35. ACCOUNTING. Payments for bookkeeping and auditing services.

36. ANSWERING SERVICE. Cost for business telephone message
services.

37. CLIENT CONTACT. Developing or maintaining communication with
clients or prospective clients by way of e-mail, snail-mail,
notes etc..

38. CONTRACT LABOR. Monies paid to those with whom you contract
for various tasks, projects, services, etc. See also category
Outside Services below.

39. DEPRECIATION. Business furniture, autos, equipment, and
improvements depleted over useful lifetime.

40. LICENSES AND FEES. Costs of obtaining permits and licenses for
sales. Local Business Tax License.

41. MARKET DEVELOPMENT. Cost of sales and performance development
in specific markets. New product research, application,
introduction, and orientation.

42. PEST CONTROL. Cost of products and services pertaining to
controlling and eliminating rodents, insects, and other
vermin (If sole proprietor, subject to business use of home
limitations.)

43. PROPS AND MEDIA. Equipment, audio visual devices, and
supplies needed to assist with business presentations.

44. PROSPECTING. Costs associated with and pertaining to search
for new clients and personnel.

45. PUBLICITY AND PROMOTIONAL EXPENSE. General announcements of
products and Services, opportunity availability, receptions,
etc.

46. REGISTRATION FEES. Costs of enrollment for continuing education,
fees for business fairs, other such other events and exhibitions
for promotion of business production and services.

47. REFUNDS. Repayments of reimbursements made for products or
services rendered.

48. OUTSIDE SERVICES. Payments made to Independent Contractors
for work performed (Issue Form 1099) in the conduct of
non-contract labor.

49. WAGES. Payments for salaries and hired help for which payroll
taxes are paid and Form W -2's are issued.

50. ONLINE CHARGES. Cost of Internet Access dedicated to business
use.

75 Items your small biz may be able to deduct, by Entrepreneur Magazine

Last Updated May 2, 2015