Learn the 8 best 2019 tax breaks and benefits for small businesses

Every small business owner wants to save money, but not all take advantage of the tax deductions that can help them achieve it. Did you know? Tax deductions can help save small business owners hundreds or even thousands of dollars every year!

A tax deduction, or tax write-off, is an expense you can deduct from your taxable income. Claiming all of the tax deductions available to your small business allows you to reduce your overall income tax bill.

Here are 8 tax breaks and benefits you need to know to help you reduce the amount of tax you have to pay:

Advertising and marketing

Almost everything you use to promote your business and bring in customers can be deducted from your taxes as a necessary operating expense. This includes business cards, social media ads, billboards, radio/TV time, and more.

Business insurance 

You likely pay for a number of insurance premiums to protect your business. Luckily, the cost of liability insurance, fire and flood insurance, business owner’s policy, and even medical insurance (in certain circumstances) can be counted as tax deductions for small business.

Business income deduction

Small businesses can also qualify for an income deduction. Businesses with a taxable income of less than $157,500 (single) or $315,000 (married) are eligible for a 20% business income deduction.

Travel expense

Many small business owners know that car mileage and gas expenses can be deducted, but don’t know that airfare, bus rides, train tickets, taxis, and even hotel stays can also be deducted.

Legal and professional fees 

Small businesses often rely on the help of other professionals to perform necessary services. Fees paid to your attorney, accountant, business consultant, or any other professional who supports your business can be tax deducted.

Rent expense 

Whether you rent a storefront on a busy street or an office in a skyscraper, the cost of renting a space for your business is tax deductible. You can also deduct the rental payments for equipment as a business expense as well.

Salaries and benefits 

Salaries, commissions, benefits, and even vacation time paid to employees are typically tax deductible. You can also deduct contributions to your employee’s retirement plans, education assistance and other employee benefit programs.

Depreciation

Depreciation allows you to deduct the cost of business assets over the time you use them. It can be applied to new and used assets with a 20 year or less expected life span.

It is important that you consult with an experienced professional accountant before claiming a deduction on your tax return. At Reachout Business Solutions, we help entrepreneurs catch overlooked tax deductions for small business. We’ll help you track and review your expenses to take advantage of every legitimate deduction. Contact us today to learn how to reduce your income tax bill.

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