Top 5 Tax Deductions Small Businesses Often Overlook

Home Office Deduction

Many small business owners work from home. Yet, they often miss out on the home office deduction. If you use a part of your home exclusively for business, you can deduct related expenses.

These expenses include a portion of your rent or mortgage, utilities, and even home repairs. Make sure to calculate the percentage of your home used for business to get the correct deduction.

records of your business trips. This will help you maximize your deduction and stay compliant with tax laws.

Startup Costs

Starting a new business involves many costs. Some of these can be deducted. The IRS allows you to deduct up to $5,000 in startup costs in your first year of business.

These costs include market research, advertising, and employee training. Make sure to keep receipts and records of these expenses.

, workshops, and seminars. This also includes books and online resources related to your business.

Make sure the education is directly related to your business. This will ensure the expenses are deductible.

Health Insurance Premiums

If you are self-employed, you can deduct health insurance premiums. This applies to premiums for yourself, your spouse, and your dependents.

Keep in mind, this deduction is only available if you are not eligible for an employer-sponsored health plan. Check with a tax professional to see if you qualify.

records and understanding the rules, you can save money on your taxes.

Consider consulting with a tax professional. They can help you identify and maximize your deductions. This will ensure you get the most out of your tax return.