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If you pay someone to care for your children while you work, you can write off related expenses. Generally speaking, you’ll have to decide whether to file them on your business or individual taxes, depending on your specific situation. Some deductions, like charitable contributions, apply to both business and personal returns, but you typically can’t claim both simultaneously. Remember Personal Tax DeductionsĪs a business owner, you can claim more tax breaks on your individual return to further reduce costs. Third, these deductions can’t skew your business income. Second, you can’t take inventory of how much you have on hand at the beginning and end of the tax year. First, you must not keep a record of when you use these supplies. This deduction comes with three main qualifiers. These may not amount to substantial expenses, but you almost certainly pay for them, so they’re worth deducting. This includes cleaning materials, printer ink cartridges, computer software, kitchenware, and stationery. Similar to home office expenses, the supplies you purchase to maintain a functional office are deductible.

If you rent it and it meets the above eligibility standards, it’s 100% deductible. Parking lots and any equipment you lease also apply. One unique consideration to keep in mind is that if you will eventually own the property, the IRS doesn’t consider your rent expenses deductible.īusiness rent deductions apply to more than just office spaces and warehouses, too. You must use your space for business purposes either exclusively or for most of the time. The business property write-off works similarly to writing off a portion of your rent for a home office. But if you rent any type of business property, you can write it off on your tax return. As a small business, you may not own your own office, warehouse, or other space yet. Home offices aren’t the only setup that allows you to deduct rental expenses from your business taxes. Know these eight ways to save money on your business taxes, and keep them in mind throughout the year. Don’t wait until taxes come due to start tracking your deductions. As we move forward after the pandemic that hurt so many business operations during 2020, it’s more important now than ever to know how you can save money on your taxes.