21 Tax Deductions

Small Businesses Need to Know

Did you know you can reduce your liability at tax time by using standard business tax deductions?

Tax deductions help small business owners reduce the cost of running their enterprise.  While most business owners are familiar with some tax write-offs, they aren’t taking advantage of all the business deductions.

The following are 21 small business tax deductions that are very commonly used.

This is not an exhaustive list, but it’s a pretty solid place to start.

1. Cost of Goods Sold

Cost of goods sold are all the expenses that go into making the product you sell.

2. Vehicle Expenses 

If you use a car, van or light truck for your company, you can deduct the cost of using it for your business.

You can write off taxes on labor, bonuses, commissions, and wages that you pay staff members.

3. Wages and Salaries

Many small business owners hire freelancers or independent contractors. You must issue Form 1099-MISC if you paid more than $600 to a contractor during the tax year.

4. Independent Contractor Labor

5. Supplies

You can deduct the cost of office supplies and expenses. For example, you can write off disinfecting supplies if you run a nail salon.

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