Tax deductions are costs that you can deduct from your income.
Here are some relevant tax write-offs for small businesses:
Business Food
As a small business, you can draw up 50 percent of the right work-related food and beverage purchases.
Work-Related Travel Expenses
All travel-related expenses can be deducted at tax time, including flight, hotels, car rental costs, tips, dry cleaning, food, and more.
Work-Related Vehicle Use
If you use your car firmly for work-related purposes, you can eliminate all costs associated with using and maintaining it. If your car use is mixed between business and personal reasons, you can only deduct the costs associated with the business use of the car.
Business Insurance
You can deduct the cost of your business insurance on your tax return. If you have a home office, or use part of your home to run your business, you can deduct your rental insurance costs as part of the writing of your home office.
Telephone and Internet Costs
If using the phone and the internet is essential to doing your business, you can deduct these costs. If, however, you use the phone and the internet to mix work with personal reasons, you can only record the percentage of their expenses that go to your business use. For example, if about half of your online use is related to a business, you could write down 50% of your annual internet expenses.
Business and Bank Interest
If you borrow money to finance your business activities, the bank will charge you interest on the loan. Come the tax season, you can deduct interest charged on both business loans and business credit cards. You can also record any additional fees and charges in your business bank account and credit card, such as monthly service fees and any annual credit card fees.