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.
Cost of goods sold are all the expenses that go into making the product you sell. So if you sell t-shirts, for instance, the COGS would be all the expenses that make that t-shirt ready for sale. Cost of the shirt, the printing, the packaging, etc.
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 do this by keeping records of when you use it for business. When you write it off, you can use the standard mileage rate set by the IRS of $0.58 a mile.