Home Finance 45 Tax Deductions For Lubbock Business Owners

45 Tax Deductions For Lubbock Business Owners

Life is expensive, so is running your Lubbock business. One expense you can’t get around in either sphere is taxes.

April 15 is right around the corner (and March 15 just passed for those filing corporate returns!), and one way to save on your taxes each year is to find legitimate tax write-offs to decrease your tax liability. This perfectly legal activity is known as tax avoidance.

“Tax avoidance is defined as “the use of legal methods to modify an individual’s financial situation in order to lower the amount of income tax owed. This is generally accomplished by claiming the permissible deductions and credits. This practice differs from tax evasion, which is illegal.” -Investopedia

There is not a master list published by the IRS on which expenses are deductible. But the idea is that all ordinary and necessary business expenses are deductible from your taxes. To claim these, you will need to file the appropriate forms, which may include a Schedule C to your 1040 or a partnership or other entity return.

Ask your CPA or tax professional about these 45 possible tax deductions, and verify that your deductions, especially travel, meals, and entertainment, meet certain IRS rules:

Possible Tax Deductions

  1. Accounting fees
  2. Advertising/Marketing Expenses
  3. Auto expenses
  4. Bad debts
  5. Banking fees
  6. Property repairs and maintenance
  7. Association membership dues
  8. Business travel
  9. Cleaning services
  10. Collection Expenses
  11. Computers and supplies
  12. Consulting fees
  13. Costs of goods sold
  14. Credit card convenience fees
  15. Depreciation
  16. Dining during business travel
  17. Employee wages
  18. Entertainment for customers and clients
  19. Equipment
  20. Equipment repairs
  21. Freight or shipping costs
  22. Gifts for customers ($25 deduction limit for each)
  23. Health insurance
  24. Home office
  25. Interest
  26. Internet hosting and services
  27. Investment advice and fees
  28. Legal fees
  29. License fees
  30. Losses due to theft
  31. Management fees
  32. Business Materials
  33. Maintenance
  34. Mortgage interest on business property
  35. Newspapers and magazines
  36. Office supplies and expenses
  37. Parking and tolls
  38. Pension plans
  39. Postage
  40. Retirement plans
  41. Safe-deposit box
  42. Safe
  43. Software and online services
  44. Storage rental
  45. Telephone

Consult this list to help you keep more money in your wallet at tax time. Keep in mind that this is just a start, and not every one of these items will apply to you or your Lubbock business. Remember that good record keeping and documentation is the key to getting every deduction that you are entitled to.

For more information about what expense you can deduct, visit IRS.gov, or talk to your tax professional.

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