Tax deductions are one of the essential benefits small businesses can avail while filing taxes. Tax deductions are also known as tax write-offs or tax benefits that are deducted from your income. When you reduce the deductible income, it reduces the taxable amount, and thus, it is a massive benefit for the company.
This procedure might seem easy, but it requires expertise and knowledge about the law to understand what should be deducted and added to the income. Thus, you require an expert CPA in White Plains who can help you with this matter. You can search for various CPA in White Plains, NY, who can help you with tax deductions and save your money.
What is Tax Deduction?
Tax deductions are write-offs in which a certain amount is deducted from your income, and thus, the taxable amount is reduced. These are tax benefits that one can avail of every year as per the law of the region. However, it is essential to know what are the laws for tax deductions and which criteria are applicable to them. Thus, for this information, it is better to consult an experienced CPA who will help you in learning about tax deductions.
What are Top Tax Deductions that Small Business Owners Should Know?
- Home Office Tax Deductions: If you are working from home as your office exclusively and regularly, then the cost for it will be deducted from your income. There is a certain amount allocated per square foot of your office, and this cost will help you offset other costs like internet, insurance, electricity, and others. However, it is essential to note that if the home is also used for other works like a guest room, workout room, or others, it will not qualify as a deductible office expense.
- Advertising and Marketing: Advertising and marketing are important for small businesses, and it adds to the success of the business. Therefore, it is considered a business expense, and thus, it will help you deduct the amount from your income. To maximize your tax benefit, you must keep track of all the expenses of your business.
- Vehicle Use Tax Deductions: If you are a small business owner who makes regular trips for your business work, then these trips will be considered as a deductible driving expense for you. In this, you can keep track of standard mileage used for business work or track actual expenses for traveling. In both cases, you can get tax deductions from your income.
