An Accountant’s TOP 3 Tax Deductions for Entrepreneurs

January is here again pffft* and I would like to help you get your business finances together in time to make a difference this year, so I am sharing my favorite 3 small business tax deductions to get you at least thinking about getting organized.

Your home office and everything in it are deductible from your business income to lower your amount of “taxable income”. The obvious things like the desk, chair, computer and supplies are deductible. Just remember, ask yourself, is it ordinary and necessary? If you can answer yes to both of those without laughing you’re probably ok. The less obvious, more fruitful home office deduction is deducting your actual homes expenses on a ratio of square footage of your “dedicated home office” to the entire home. Please do add your garage if you can justify it somehow. Try me. Side note to take caution if you own the home and for sure plan on selling soon.  Email me and say hello if you would like the google.doc calculating spreadsheet I made for the home office deduction MAX.  Proceed with CAUTION:  (Prison is no fun, tax evasion is a felony)

You can Deduct 100% of the purchase price of a heavy vehicle used for business (50% or more) as depreciation (Section 179 bonus depreciation. TCJA 2017).  You absolutely need to have a CPA file your taxes if you think you want to do this okayyyyy?  The cons may not outweigh the PROS for you on this deduction.  Be smart brussell spout.

“Business” Meals are usually only 50% deductible as a business expense. But in order to bring our restaurants back to life from the pandemic the BIG BALLER GOVT is encouraging meals at dine IN restaurants and they are 100% deductible this year and 2022 too as it stands 1/17/22.  So by means!!!!  Pay thousands of dollars to have and eat your cake you fools.  You already have the cake all you have to do it EAT IT!  It’s free….  Information is free, go seek it.

Self-employed individuals who, due to COVID-19 are unable to work or telework for reasons relating to their own health or to care for a family member to claim refundable tax credits to offset their federal income tax. The credits are equal to either their qualified sick leave or family leave equivalent amount, depending on circumstances. IRS.gov has instructions to help calculate.  DYOR: Do your own research to determine if you are eligible.  Proceed with CAUTION:  (Prison is no fun)

More info on that here:  https://www.irs.gov/newsroom/new-irs-form-available-for-self-employed-individuals-to-claim-covid-19-sick-and-family-leave-tax-credits-under-ffcra

I hope you’ve found something of value here, a nugget, that is applicable to your business and can save you money. 🤑