If you own your own business, thinking of things to purchase to help your business is constantly on the brain. However, have you thought of putting all those items to work for you on tax day? I compiled a list of tax deductions you may not have thought of. But first, do you know what a “tax write-off actually is?
Disclaimer: I have to state that this blog post is not official accounting or tax advice. Always double check tax related information with a professional you work with as it pertains to your state.
What is a Tax Write-Off?
You hear it all the time in movies, “It’s okay, I’ll just write that off.” But what is a “write-off” exactly? It’s actually an expense you can deduct from your taxable income. You simply take the amount of the expense and subtract that from your taxable income. Basically, tax write-offs allow you to pay a smaller tax bill. And who doesn’t want a smaller bill on tax day, am I right?
Know When To Hire A Specialist
If you haven’t heard, the U.S. tax law is complicated. It’s got so many rules and exceptions. Lots of times, things can change depending on what state you are in and even who the president is that year and laws they pass that effect your taxes.
I get it, it’s always good business to be able to find ways to save money, especially when you’re starting out. But it’s also important to know when to hire professionals that specialize in what you need to truly help your business expand.
Paying more for a specialist will cost more, but will save you so much time and energy in the long run! For instance, I can’t tell you the load off my shoulders I felt after hiring my CPA, Accountant, and Financial Advisor! They have also helped me stay on top of Quickbooks, pay my taxes for me online, and set up my first ever SEP-IRA for my retirement. That’s a huge benefit that I don’t have to worry about these things.
Common Tax Deductions
Here are some common deductions you may or may not have used in your business:
- Hiring someone to design a business logo
- The cost of printing business cards or brochures
- Purchasing ad space in print or online media
- Business meals (50%)
- Business insurance
- Contract Labor – like any freelancer or independent contractor
- Use of your car – either standard mileage rate or actual expense method
- Sending cards to clients
- Launching a new website
- Studio Rent
- Equipment purchases (check with a professional about how you’d like to do this. Depending on the expense of the equipment, it will have a different depreciation value.)
- Education – seminars, online ed, workshops
- Interest – if you take out a loan or use a credit card for business expenses, you can deduct the interest paid to your lender or credit card company (certain requirements need to be met)
- Running a social media marketing campaign
- Travel Expenses
- Office Supplies
- And drum roll please…
Headshots Are A Deduction
That’s right, folks. Rest easy when planning your business domination online (often the first place and sometimes the only place people will meet you). Headshots are a deductible business expense – usually for marketing or advertising – and this should be deductible in any state. But of course, you should always confirm that with the state they are reporting in.
Contact me if you’d like to take the next step and talk about updating your existing branding photos to make sure your online presence is as personable, refreshing, and professional as you are!