Summer is heading your way at full force which means your small business is getting ready for the busy season. Families and individuals across the country are out and about making deals, traveling on vacation, renovating their homes, enjoying some needed time off, and more.
With all this summer hustle and bustle the last thing on your mind is taxes. However, this means you are missing out on some major savings! Here are six summer tax deductions you should know about.
6 Summer Tax Deductions You Should Know About
Home Office Deduction
Do you work from home and have an office space where you complete your work? If so, then you can count that as a deduction as long as the home office meets IRS requirements (space solely devoted to your business).
Now if your children use this space in your home as a play area, you cannot count that as a deduction (Lol). Placing your laptop on a table or laying on the couch working won’t cut it either. However, an entire room does not have to be devoted to your home office; part of the room will work.
Don’t even try to claim your whole house unless you want someone from the IRS knocking on your door sooner rather than later.
Office Space Rental
If you need to find a larger business or office space to accommodate your growing business or staff, you can deduct the difference in cost for renting the space.
The interest on your mortgage loan can also be deducted!
Did you know that you could deduct the cost of utilities for running your business? Yep, things such as your electricity bill, A/C bill, phone bill, internet, and more can be deducted.
Note: If you have a home office, a family landline cannot be deducted. However, the 2nd line for business calls only can be. You can also deduct the percentage of calls that are used for business calls from your mobile phone bill.
Although we live in a tech-savvy world, there are just some office supplies that you need in your office space. Materials such as pens, pads, sticky notes, etc., can be deducted. You can also deduct cleaning supplies that are used to keep your space nice and clean.
Furniture upgrades and software subscriptions can also be deducted so that you can give your team the comfortability and tools they need to produce results.
Do you need to travel to handle business-related concerns? Deduct those expensive travel costs for airfare, train tickets, and lodging.
Meals and entertainment costs can also be deducted, but don’t splurge too much; only 50% of these costs can be deducted.
No matter how much money you spend on an equipment purchase, things break and need maintenance at some point. If equipment for your business needs to be repaired, you can deduct these costs.
Enjoy summer and all of the perks that come with the season! Make sure to keep a detailed record of your business-related receipts and take advantage of these common tax deductions.