Starting a business can be overwhelming and exciting at the same time. You are putting your goals into action and sometimes that means unknowns. You will have to figure out how to do things such as taxes for your business. You could either do them on your own or hire Cooper Norman to do them for you. This could save you a lot of time and stress, as taxes are not an easy task. If you do choose to do the taxes for your business, there are many things that can give you a tax deduction. That is one of the benefits of using an accountant, are they know the ins and outs of tax deductions. When you do them on your own, you may have to research what can give you a tax deduction.
Home Office
If you use a designated area in your home for an office or if you rent out an office there is a way to deduct the cost of it. With a room in your home that you use as your office, you will have to separate the costs of the office from the rest of the home. This can be complicated and you have to be ready to defend whatever you claim to deduct from your home office. If this seems to be too much to calculate or won’t be ready to defend it, there is a standard rate that you can multiply by the square footage of the space.
Insurance Premiums
One benefit of being self-employed is that you are able to deduct your insurance premiums. As long as you are not able to obtain insurance through your spouse. This allows you to deduct the premiums for health and dental. Not only are you able to deduct your premiums, but also your spouse and dependents. The dependent’s premiums you will be able to deduct till they turn 27 years old.
Education
While owning a business, you may need to or want to further your education. This could be required hours for maintaining licenses or if you are just wanting to learn more. The costs that are associated with these classes or conferences can be used as a tax deduction. It is only able to be used as a deduction if you are maintaining or farthing your skills in your field. If it is for a new skill, it will not be able to be deducted from your taxes.
Advertising
If you are paying for advertising for your business, it can be tax deductible. This could include google ads, billboards, and commercials. Any form of advertising used to promote your business is a great way to generate business. If you are able to use the costs of advertising as a tax deduction, it’s a no-brainer to invest in it.
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Do Research
These are just a few of the different items that are tax deductible as a business owner. There are so many others costs that could be deducted from your taxes. That is why hiring an accountant can be beneficial, they are experts in this. If you choose to do your own taxes, do your research to make sure you are getting the most out of your business deductions.