Business tax deductions aren’t just for printer paper, gas receipts, and business lunches; they reach far and wide. Many of the things you use on a day to day basis can be used to help lower your tax liability and give you a big break on taxes.
One example is the technology you use every day. Sure, you might also use it for your home, but that doesn’t mean it can’t work for you. Just like the home office deduction, you use your adobe for living and for working, so it’s the best of both worlds. The same goes for software you use to improve your business.
So what counts? Let’s take a look.
Your business operates better when people know about it. While you’d like for customers to magically appear, marketing yourself to the public works a little better. Did you know these efforts can be deducted on your taxes? Most people think of marketing as something you see on TV, but Facebook ads and featured Tweets also count.
Where to Deduct: Schedule C, Line 8: Advertising
You have other things to do besides write down every single penny of income you receive and expense your business incurs. Instead of hiring an accountant, you may have signed up for a service like GoDaddy Online Bookkeeping. If so, the charges for the service can be deducted to help out with your taxes. Most services like this that have regular fees can be deducted as long as you use them for your business.
Where to Deduct: Schedule C, Line 18: Office Expense
Every business needs a website in this day and age, and it costs money to keep up a good one. Between creating, registering, and hosting it, you’re likely to run up a bit of a tab. Well, you guessed it – these charges can be written down as a deduction for your business taxes!
Where to Deduct: Debatable; some CPAs say Schedule C, Line 8: Advertising, while others say Line 27: Other Expenses.
Training and Classes
While you’re likely good with most tech, you might want to make sure you’re 100% on everything you’re doing. Or you simply want to see if there are any new trends you’re missing out on so you have the best and latest software and knowledge available. If so, you could take some classes or get some private training, or even buy a bunch of “How to” books. All this can be written off on your taxes as essential for your business.
Where to Deduct: Schedule C, Line 27: Other Expenses
These ideas are just the beginning. Basically, anything you use for your business in the technology world can be written off. While you may not be able to deduct 100% of everything (like your smartphone, which you likely use for both personal and business), you can still get a hefty heap of help.
One thing: absolutely make sure you keep every piece of proof you can. Receipts, pictures, anything else you can think of that will keep the IRS off your back if they decide to audit you. You don’t want them to think you’re scamming them when you’re simply trying to save your business money!