Overlooked tax deductions for small business owners

How can small business owners save on taxes? How to maximize tax deductions for small businesses? What are some tax deductions for LLC owners? Why income tax is such big deal for business owners?

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Being a small - business owner isn’t easy. After all, balancing payroll, managing employees, drawing up marketing plans, and handling the bookkeeping can be stressful! Luckily, the Internal Revenue Service (I.R.S.) allows small - business owners to take some surprising deductions , which may help come tax time.

Running a business can be time-consuming and stressful. Keeping up with all the ins and outs of tax planning is often ignored. Take a look and see if you are missing out on some valuable tax deductions.

Fortunately, small business owners and entrepreneurs who use their home for work can benefit from various home business tax deductions that help them reduce their taxable business income. As part of National Small Business Week (April 30-May 6), the IRS is highlighting a series of tips and resources available for small business owners.

Most Overlooked Small-Business Tax Deductions 1. Health insurance premiums. Home office deduction. Self-employment taxes. Driving or business miles is a tax deduction for small business owners that you shouldn’t overlook.

You probably drive a lot. Make sure you’re getting the most out of those miles with a mileage deduction. Just be sure you have a proper mileage log to back up your mileage claims.

The last thing your small business wants is for the IRS to audit your claim, then not allow your deduction and charge penalties. Helpful tips for tax time. According to the IRS, each year millions of taxpayers overlook deductions and credits resulting in overpaying their taxes.

Section 1Deduction. Business owners know that most of their expenses are deductible. But it might surprise you to learn how many leave money on the table by not claiming all allowable write-offs. Your tax activities in prior years sometimes yield deductions in the present.

So check prior year tax returns. Here are the most commonly overlooked deductions.

These include popular deductions for vehicle expenses and home offices as well as a. Petty cash is money used for the small items you pay cash for , like bagels for the office meeting or parking and tolls. Expenses for Preparing Documents. Carrying Charges and other Fees.