Many small businesses dread filing their quarterly taxes, but deductions help owners lower their tax burden. In addition to the standard deductions that most businesses take, there are lesser-known write-offs that can reduce tax bills even further.
1. Home Office
If you run your business out of a dedicated home office, you may be able to take the home office deduction. The catch with this deduction is that the space must be used exclusively for business purposes.
There are two ways to deduct a home office:
- Deduct actual expenses. You’ll need to have records for the cost of painting, repairs, utilities, rent, insurance and other expenses you want to write-off.