![]() The cost of items and services purchased to directly promote or market your business can be claimed. Advertising costs, both online or offline.You can either deduct the entire cost of the asset in the year it was purchased, or you can deduct the cost of its depreciation. This would be items such as desks, laptops/computers, machinery, and POS systems.ĭeductions for these items are treated differently. While website and software expenses could be included with your office expenses & supplies, you can also deduct it separately.Īny hosting, bookkeeping software, or SaaS subscriptions used for business purposes, are tax-deductible.Īny business purchase that is expected to last longer than a year is considered a business asset, rather than an expense. If you’re travelling for an interview, those costs can also be included. This includes flights, hotels, and meals. Ink cartridges, printers, or printing services that you’ve contracted are all eligible business expenses.Īs long as it’s business-related, you can claim travel expenses. This includes stamps, freight, postage fees, and prepaid shipping fees on returns. Payments made towards benefits for you and your employees, such as disability insurance, life insurance, dependent care assistance, and health plans are tax-deductible. This applies to your workplace, equipment/machinery, and your fleet of vehicles, if you require one for your business. This includes premiums, repairs, depreciation, gas, lease payments, tires, and tolls/parking fees. On the plus side, tolls and parking fees are fair game. If you use the same car for business and personal needs, you’d base your claim on mileage. However, when it comes to car insurance, there are 2 ways to report these expenses for a deduction. You can deduct premiums for business-related insurance, such as malpractice, real estate, workers’ compensation, and business liability insurance. Otherwise, it could be difficult to maintain accurate records of what you're spending from your business finances, and what should be coming out of your personal finances.Īny subscriptions to relevant industry publications can be deducted.Īll membership fees to professional or trade associations that help promote your business can be deducted as well. Just make sure you're using a dedicated business bank account. Since you pay interest on any borrowed money or lines of credit, such as a business credit card, you can claim that interest as a business expense.Īny banking fees on business accounts, such as minimum balance fees, overdraft fees, business transaction fees, payment processing fees, etc. If you’re working from a home office, then you can deduct a portion of these costs, based on the percentage of your home that’s being used for the business. If you’re listing expenses for a commercial space, then costs like electricity, internet, sewage, trash, water, A/C, etc. Whether it’s for commercial space, a home office, or cell phone plans, you should definitely include telephone and internet costs in your deductions. This can include cleaning products, paper, stationary, envelopes/packaging materials, writing materials, and even snacks and drinks.The office expenses category covers costs related to the operation of your business, such as software, hosting, etc. The only caveat is that the amounts paid should be considered reasonable.Īny office supplies that are purchased for the needs of the office can be deducted. If you rent office space, or commercial space for inventory storage, it’s deductible.If you have a commercial mortgage, or have taken out a loan for business improvement/expansion, only the interest will be tax-deductible.Įmployee salaries, gross wages, commissions, bonuses, and any other forms of compensation count as a tax-deductible expense. Regardless of the size of your company, you should be tracking the following common business expenses, as they're the most frequently claimed deductions:
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