There are many tax breaks that are offered to small business owners and even those who fall under the self-employed bracket to help reduce their amount of taxable business income at the end of the year. The less taxable income a person or business has, the less they may have to pay back to the Internal Revenue Service (IRS) come time to file taxes. It is always a good idea, however, for an individual to have a professional help them determine what can and cannot be written off as they wouldn’t want to make a mistake that could potentially jeopardize their business.
So, what are some tax write-offs small business owners can use to help lower their taxable income?
Given they apply, Bankrate says the following can be used as a tax write-off if an individual owns a small business in Orlando:
- Office Supplies
If a small business owner is required to purchase office supplies to run their business, they can deduct these come tax time. From things like computer paper to printers, a business owner can deduct all of these things to help lower their taxable income which, in turn, can lower the amount they owe back to the government.
- Furniture and Other Equipment
Business owners who purchase furniture and other equipment to run their business can deduct certain costs to lower their income. For example, Bankrate says the following would qualify as acceptable tax write-offs.
- Office furniture (e.g. desks, chairs, etc.)
- Machines or other types of equipment that are used for business purposes.
- SUVs, pickup trucks, and vans that weigh for than 6,000 pounds.
- Certain improvements that are made to the interior of a commercial property.
- Software and Electronics
Software, laptops, tablets, smartphones, and even other types of electronics can be used as a tax write off for small business owners. Depending on the value of the item, it may need to be depreciated. Bankrate also says that new computer software can be “fully expensed in the year it the year purchased” and cannot be “custom-designed.”
If a small business owner is required to travel for work, they can add up all the miles that were driven and use this to receive a deduction. Vehicles that are being leased for the business can also be included and used to lower taxable business income.
There are plenty of other tax write-offs small business owners in Orlando can use to help avoid having to pay too much back come tax time if they opt to file mid-year like most individuals.
If a business owner has questions regarding the financial affairs of their business or has run into some issues with reporting their income to the IRS, they should consider consulting with an Orlando, FL business law attorney. The business law lawyers at Legal Counsel P.A. are skilled in various areas of business law and are more than qualified to work with a business owner to get their issue resolved.
Legal Counsel P.A. is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]