75 Items You May Be Able to Deduct from Your Taxes
By: Mark J. Kohler, VIP CONTRIBUTOR
Author, Attorney and CPA
Benjamin Franklin said it best when he coined the phrase, "A penny saved is a penny earned."
Many business owners take years to understand that taxes are one of their biggest costs, and it really doesn’t take a lot of effort to make sure you aren’t missing something on your taxes.
Before setting forth my list of the top 75 deductions/strategies, allow me to make an important point: You are the captain of your own ship. You don’t have to be an accountant to manage your accountant. Make sure you have a regular conversation with your tax preparer and discuss these items.
Your accountant should be suggesting these to you … and they should be trying to find ways to write-off expenses -- not just telling you no and talking down to you. Use this list as a discussion point and make sure you have the right person helping you with your taxes.
Consider this list of 75 possible tax deductions for business owners. It's just a start and not every one of these items is always a viable deduction, but certainly worth a discussion.
75 possible tax deductions (plus two bonus deductions)
Business association membership dues
Children on Payroll
Commissions to affiliates
Computers and tech supplies
Continuing education for yourself to maintain licensing and improve skills
Dining and Office food
Exhibits for publicity
Freight or shipping costs
Furniture or fixtures
Gifts for customers ($25 deduction limit for each)
Group insurance (if qualifying)
Health Reimbursement Arrangement
Health Savings Account
Internet hosting and services
Investment advice and fees
Leased Vehicle or equipment
Maintenance and janitorial
Newspapers and magazines
Pass-Through 199A Deduction
Rebates on sales
Spouse on Payroll
Social media advertising
Software and online services
Taxes (Personal and Real Property)
Video equipment for business YouTube channel
Surprisingly, there isn't some master list included in the Internal Revenue Code or provided by the Internal Revenue Service. There is simply the tax principle, set forth in Code Section 62, which states a valid write-off is any expense incurred in the production of income. Each deduction then has its own rules.
A good CPA should be teaching their clients to think above the line -- that is, your Adjusted Gross Income (AGI) line. Your AGI is the number in the bottom right-hand corner on the front page of your tax return. Any tax return. And what I mean by thinking above this line is constantly trying to think of any and all personal expenses that may have a business purpose. With a small-business venture in your life and on your tax return, you may be able to convert some personal expenses to business expenses, as long as you have the proper business purpose for that expense.
Seasoned business owners become proficient over the years at keeping good records and realizing when expenses have a legitimate business purpose. For some, this thought process becomes so ingrained that it becomes almost impossible to buy something without first considering a tax purpose for that item or service.
In sum, try to track every single expense related to your business and comb over them with your CPA at the end of the year to ensure you only take legitimate deductions. Good record keeping and thoughtful consideration will minimize your risk of an audit if the IRS ever comes knocking.