This guest post was written by Joe Serrone, a Xero Silver Partner and Enrolled Agent & Tax Strategist at Polaris Tax & Accounting.
Tax deductions are critical in order to reduce your tax liability because they directly reduce taxable income. Many small business owners are unaware of the deductions that are available to them so I’ve laid out a comprehensive list of the most common deductions to consider this tax season along with details on what they will include but here is a quick list at a glance:
Car and truck expenses
Commissions and fees
Depreciation and section 179 expense deduction
Employee benefit programs
Legal and professional services
Pension and profit-sharing plans
Rent or lease
Repairs and maintenance
Taxes and licenses
Home Office Business Deductions
Before considering any deductions though, it is important to remember that you need good business accounting & bookkeeping records in order to take advantage of every single business tax deduction available to you. If your books need some tender loving care, then consider working with someone that can provide catch-up & cleanup bookkeeping for your business.
Also, remember that you might not qualify for every single one of the deductions listed in this article. Therefore, consider consulting with your trusted advisor before claiming these deductions, it is always important to have a professional evaluate your individual situation.