Being an owner of a small business has great benefits: You're your own boss, you get all the profits from your business, and you can hire people to do the dirty work for you. However, tax time can be extra strenuous, and not to mention expensive. Since you are your own boss, you have to answer for all your taxes, and it can get very overwhelming very fast. There is a light at the end of the tunnel though to help you at tax time: deductions. Part of owning your own business and being successful is to take every legal deduction you can to maximize profits. Some of the most commonly overlooked tax deductibles may not seem like the most obvious, but knowing about them will give you an edge in making a few extra bucks for you and your business.
Using a home office as your base of operations can have one surprising benefit: it can be deducted! It doesn't even have to be a full room, as your home office can be a corner or part of a room as well. You must measure your work area and divide by the square footage of your home to find the exact fraction you need to calculate your work-related deduction. This can apply to rent, mortgage, insurance, electricity, and whatever else goes into making your business work.
Your home office does not limit your deductions there. You can also write off your office supplies. You need only prove your purchases with a receipt(s) to deduct them from your taxes. This can include, paper and ink for your printer, pens, staples, paper clips, and many other things. Anything you need to purchase to run your business could potentially be a write-off as long as you are prepared to prove its worth.
Finally, equipment and office software are also up for grabs as tax deductions. Your computers, copiers, scanners and other machines can be 100 percent deducted for your home business. The cost of software and subscriptions to magazines and other periodicals are also fully deductible, saving you for the year they were purchased in. This can save you quite a bit of money and allow your business to grow with your new software and machinery.
Utilizing these deductions can make most of your business expenditures into tax cuts that can save your bottom line. When you're the only one who's watching for your business, you've got to make the most of what you can. Look into these deductions and see what you can qualify for. Happy savings for everyone! Check out Online Tax Pros to get your taxes taken care of by experts who want you to get the best deal you can on your returns.