Are You Missing These Common Write-Offs?
As the end of the financial year looms, the pressure to get your books in order and maximise your tax deductions is on. It’s crunch time, but don’t worry—I’ve got your back. Let’s talk about some common (and often overlooked) tax deductions that could save you money. Ready to dive in? Let’s go!
Home Office Deduction
If you’ve been working from home, even part-time, you might qualify for the home office deduction. This isn’t just for freelancers or remote workers—any small business owner who uses a portion of their home exclusively for business can benefit. You can deduct a percentage of your mortgage interest, utilities, insurance, and repairs. Remember, the space must be used regularly and exclusively for your business activities.
Office Supplies and Equipment
Got a stash of sticky notes, pens, or printer ink? All those office supplies are deductible. Even big-ticket items like computers, printers, and office furniture qualify. If you purchased any equipment essential for your business, keep those receipts handy. These expenses can add up, giving you a nice little tax break.
Travel Expenses
Did you travel for business this year? Flights, hotels, meals, and even Uber rides can be deducted, provided the trip was primarily for business purposes. Make sure to keep detailed records of your itinerary and business activities conducted during the trip. This documentation will be crucial if you ever need to substantiate your deductions.
Vehicle Expenses
If you use your vehicle for business, you can deduct either the actual expenses (like gas, maintenance, and insurance) or use the standard mileage rate set by the IRS. Keep a detailed log of your business mileage, and don’t forget to separate personal use from business use. Apps like MileIQ can help you track your mileage with ease.
Continuing Education
Have you taken any courses, attended workshops, or gone to industry conferences this year? These can all be deductible if they improve your skills related to your current business. This includes registration fees, travel expenses, and even the cost of books or materials. Investing in your education pays off in more ways than one!
Utilities and Rent
If you rent an office space, you can deduct the rent you pay. Similarly, if you have a dedicated business phone line or internet service, those bills are deductible too. Just be careful to separate personal and business use—only the portion used for business can be deducted.
Professional Services
Fees paid to accountants, lawyers, and other professionals who help you with your business are deductible. This includes tax preparation fees, legal advice, and even consulting fees. If you paid for any professional services to keep your business running smoothly, make sure to claim these expenses.
Marketing and Advertising
Did you spend money on advertising this year? Whether it’s business cards, social media ads, or a shiny new website, these expenses are fully deductible. Marketing is essential for growth, and the IRS recognizes that. So, go ahead and deduct those costs!
Charitable Contributions
If your business made any donations to qualified charitable organisations, you can deduct those contributions. This can include cash donations or even goods and services. Be sure to keep receipts and documentation to substantiate your contributions.
Bad Debts
Unfortunately, not every customer pays up. If you have any outstanding invoices that you’ve deemed uncollectible, you may be able to write off these bad debts. This applies only if you’ve previously included the amount in your income.
Wrapping Up
There you have it! These common write-offs can make a significant difference in your tax bill. The key is to keep thorough records and documentation for each deduction. If you’re feeling overwhelmed, don’t hesitate to reach out. I can help ensure you’re maximising your deductions and staying compliant with tax laws.
Remember, every little bit helps. Happy deducting, and here’s to a prosperous new financial year!
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