Deductions play a vital role in reducing taxable income for small businesses. Here are some strategies to maximize your deductions:
Keep detailed records of all business-related expenses, including receipts and invoices. This will ensure you can claim every eligible deduction.
If you operate your business from home, consider claiming the home office deduction. Ensure you meet the IRS requirements to qualify.
If you use your vehicle for business purposes, track mileage and expenses. You can choose between the standard mileage rate or actual expenses for deductions.
Understand the rules surrounding business meals and entertainment deductions to ensure you are claiming them correctly.
Maximizing deductions can significantly lower your tax bill.
