hey everyone karan here from life accounting where we help you save on taxes
and build your wealth and today i'm going to give you the master list of deductions
by revealing 101 deductions you qualify for as a small business owner look it doesn't matter
if you're a sole proprietor a partnership an llc you can take these deductions hey
it doesn't even matter if your business is big if your business is small you are eligible to
take these deductions if the cost is ordinary and necessary for your business you can take
the deductions now i'm going to list them in alphabetical order so stay tuned until the end
so you don't miss one and let me know in the comments if this helped you at all i want to
know if i should continue to make massive list videos like this one let's get into it
first on the list accounting fees those are fees to maintain accurate records interpret reports
and file taxes advertising and marketing think advertising spend email marketing social media
costs and more amortization which is the active recovering capital cost over a fixed period of
time for things like starting a business section 197 deductions previously unused deductions
and more bad debts from customers suppliers or distributors who do not pay you for services
rendered yup you can write those off bank fees we all hate maintenance fees the wire fees the
overdraft fees but luckily they are deductible barter costs such as the cost you incur to
perform the service or create the good when bartering board meeting expenses bookkeeping fees
business association member dues business related conferences conventions and trade shows business
travel look i created an entire video on how to write off your business travel expenses
so be sure to check it out business use of your home yes if you use a space in your home regularly
and exclusively for business you can write it off this applies to people who rent and own an
apartment or house car expenses if you use your car for business you can write off the cost of
the vehicle with the actual expense method or the standard mileage method charitable contributions
made for a business purpose yep charitable contributions by corporation can be deducted
up to 25 of his taxable income now contributions that exceed that amount can carry over to the next
tax year these limits are greater for personal charity contributions though charity are traveling
to perform charitable services child care yup most people don't know but child care costs you incur
so you can be free to conduct your business is deductible on your personal taxes
not as a business expense though cleaning and janitorial services collection expenses
or money spent trying to collect a business debt is generally deductible whether you are able to
recover all some or none of the money owed to you commissions to third parties computers and tech
supplies so if you buy a new or used laptop computer printer ipad etc for your business
you can deduct it consulting fees contractor and freelancers by the way you can find some pretty
good freelancers on fiverr.com just a tip if you never heard of that website co-working spaces
credit card fees depreciation on things like homes buildings equipments furniture and
computers eating out while traveling for business it's deductible as long as it's a reasonable cost
like flying to omaha to eat a six thousand dollar burger might not fly with the irs education for
yourself through books courses classes or anything else you need to maintain licenses
or simply stay up to date on what's happening in your industry it's deductible education for
your employees is also deductible employee awards that are tangible personal property
like a trophy or certificate is deductible but is subject to certain deduction limits this includes
achievement service and safety awards employee benefits are deductible including vacation pay
sick leave and disability benefits employee discounts employee jury pay employee loans
or advances you don't expect to be paid back employee reimbursement under an accountable plan
four expenses incurred while performing services as an employee are deductible employee wages
wages include but are not limited to salaries hourly pay piece rate or payments by the job
commissions and bonuses overtime and vacation pay and any reasonable cash value of compensation
other than cash equipment purchases equipment rent equipment repairs equipment maintenance
film television and live theatrical production costs a mouthful right for under code section 181
film television and live theatrical production costs can be expensed immediately until 2025
franchise fees rate or shipping cost furniture or fixtures gifts for customers or employees
under 25 dollars are deductible guard dogs yes you heard that right their food vet bills training
and other expenses are deductible if they are a certified guard dog and a member of a
traditional guard dog breed such as a white roller or a german shepherd sorry moose gym
for employees located on site health insurance for yourself your spouse and your dependents
is 100 deductible when you're self-employed check out my video on this channel on how to write
off health insurance and dental insurance home rental also known as the augusta rule allows you
to rent out your home for up to 14 days per year without having to report the rental income on your
individual tax return which is great for business owners who can rent their house to their business
improvements to a business asset insurance premiums for credit liability my practice
workers comp and other insurance hey by the way if you made it this far go ahead and hit that like
button for me it helps other business owners find this on youtube and subscribe to the channel for
more information that helps you save on taxes and build your wealth okay back to the list insurance
premiums on business property interest on loans their tax deductible as a business expense
internet cost inventory investment advice and fees your kids if your child under the age of 18
works in your business and you pay them an amount less than the standard deduction
you get a tax write-off for the pay you give them and your kids or you can use that income tax-free
crystal made a great video on the tax benefits of hiring your kids so be sure to watch it legal fees
license fees lodging while traveling for business is deductible this includes hotels motels airbnbs
and even reimbursement to friends or family members for staying at their home management
fees materials maintenance meals you eat are 100 deductible from a restaurant until december 31st
2022 all other business meals aka not from a restaurant are 50 deductible medical expenses
that are not reimbursed and more than 7.5 percent of your adjusted gross income is
deductible mileage from a business vehicle is deductible when using the standard mileage method
mortgage interest on business property moving expenses for your business paper and online
magazine subscriptions for your business office supplies and expenses offers entertainment
such as speakers pool tables and games are deductible office rent organizational costs
also known as incorporation costs are the cost to form an llc a partnership or corporation
in their deductible in the first year business or amortized over 15 years payroll processing costs
payroll taxes for employees including social security medicare taxes and unemployment taxes
parking and toll fees penalties and fines paid for late performance or non-performance of a
contract pension plans permits and fees print materials including business cards
flyers and brochures are deductible profit sharing is deductible up to 25 of the compensation paid
during the taxable year to all participants prizes for contests the qbi deduction which
stands for qualified business income allows you to deduct up to 20 percent of your business income
look y'all this is huge watch sherman's video on taking the qbi deduction it's a huge deduction
that can save you thousands of dollars real estate related expenses such as repairs travel insurance
capital expenses and depreciation are deductible if you own rental property rebates on sales
so when you accept returns or discount your products as part of a promotion or concession
to an unhappy customer it is deductible research and development expenses retirement plans for
the employer like a sep ira or solo 401k provides massive tax deductions and our great opportunity
to grow your investment portfolio tax-free service fees signage software and online services startup
expenses or the cost that you incur to a create an active trader business or b investigate the
creation or acquisition of an active trader business is deductible so check out my entire
video on how to write off your startup expenses to learn more storage rental fees taxes yup taxes
are deductible and they include state income taxes payroll taxes personal property taxes real estate
taxes paid on business properties sales tax excess tax fuel taxes and business licenses telephone
costs are deductible so if you use a voiceover ip service or analog telephone service you can write
it off depth and loss is deductible if the loss is attributable to a federal declared disaster
tips you give out are deductible say to drivers or waiters while traveling for business tools
uniforms for your employees utilities waste removal website design and lastly
workers compensation insurance if you'd like more information on what the irs says can be deducted
be sure to check out publication 535 business expenses and now that you know what you can deduct
i want you to be aware of the expenses you cannot deduct you usually cannot deduct the following 11
things as a business expense don't try it first on the list bribes and kickbacks business attire
that can be worn outside of work such as suits demolition expenses or losses entertainment
expenses are no longer deductible federal income taxes don't try it lobbying expenses
membership dues penalties and fines you pay to a government agency or instrumentally because you
broke the law personal living and family expenses you cannot write them off political contributions
and lastly time contributions to a charity look i'm gonna place a few videos on the screen i think
you should watch next be sure to check them out and if you found this video helpful like always
do me a favor and hit that like button for me it helps others to find this video on youtube and
subscribe to the channel for more financial information that helps you save on taxes
and increase your wealth i'm quran from life accounting and i'll see you in the next video