As a small business owner in Coral Springs, FL, it is important for you to be aware of the various tax write-offs that can help save you some money when it comes time for you to file your taxes. After all, what business owner doesn’t want to save some money? But, before we get into what write-offs apply to small business owners in FL, let’s review what a tax write-off is exactly.
According to Turbo Tax, a tax write-off “is any legitimate expense that can be deducted from your taxable income on your tax return.” It can be an “expense of doing business or the diminished value of a business’ asset.” Turbo Tax says that identifying which tax write-offs apply to your business can be the “trickiest part of filing [your] income tax, particularly because there is a fine line between which expenses are deductible and which ones are not.” To give you an idea as to which tax write-offs can be included on your tax return, below we have listed a few common ones from Bankrate that many business owners like yourself include on their taxes each year.
If you operate your small business out of your home or you utilize a space inside your home for your business, you can use this as a write-off when filing your taxes. Now, the Internal Revenue Service (IRS) has very specific criteria that must be met in order for a business owner to qualify for this tax write-off, so it is best to confirm you meet the guidelines before assuming that you do. Bankrate says that in order to claim your home office on your taxes, the space must be “devoted to your business and absolutely nothing else.
Your home office can be an entire room or a part of a room. When claiming your home office on your tax return, you will need to “measure your work area and divide it by the square footage of your home” so that you know how large of a space it is that has been designated for your business.
Furniture and other equipment.
Small business owners “who make office furniture and equipment acquisitions can deduct up to” a certain amount on their taxes. Bankrate highlights the following as some of the qualified assets that can be included as furniture and other equipment that can be deducted:
- Any machines or equipment that was purchased for business use.
- Office furniture.
- SUVs, pickups, and vans that weigh more than 6,000 pounds.
- Certain improvements to the interior of commercial property.
Important: Remember that the government can propose and implement certain changes to tax write-offs which means this information could change in the future.
Software and electronics.
Certain “gadgets that have become indispensable to small business can be written off. These office expenses include software, laptops, tablets, smartphones and other smaller electronics.”
If you are required to drive for your small business, you can claim the mileage you drive on your tax return. Bankrate says that if your business or office is based out of your home, “you can deduct the entire business-related mileage, from the minute you pull out of the driveway until you return home.” In the event your business is not home-based, then “your mileage meter starts at your first business-related destination and ends at your last.”
There are plenty of other tax write-offs small business owners can take advantage of and a Coral Springs, FL business attorney can explain to you what these are. If you have any questions regarding what you can and cannot use as a tax write-off for your small business in FL, contact Express Law to speak with a business lawyer who can answer them. It is always a good idea to have a lawyer working with you when preparing your taxes to ensure you are filing them properly and including all of the deductions you are eligible to receive.
Express Law can be reached at:
2900 West Sample Road
Pompano Beach, FL 33073