As a business owner, this is the time you realize that
bookkeeping records, business transaction receipts and other important
paperwork indicate that they have to pay more than you expected. To help you
and your business come out on top, take some time to analyze these tax
deductions and incentives.
If your business is providing health insurance coverage to
employees, then it may be eligible for a tax deduction. To qualify, a small
business must at least half of their employees’ health insurance premiums
,which amounts to 35% of the total premiums paid. To check how much you qualify
for, you can use the small business tax credit calculator provided by The
National Federation of Independent Business (NFIB).
New and Used Hardware
and Software Purchases
Has your business purchased any new or used equipment? Well,
if the equipment purchased complies with Section 179 of the IRS code, you have
qualified for a tax deduction amounting to the full purchase price of the
equipment. The total deduction limit is $500,000.
Educational Assistance Programs
Tax incentives on The Educational Assistance Program are
meant to provide incentives for business owners to support advanced training
and education of the employees. This tax break covers equipment, books,
tuition, and supplies and is applicable to both graduate and undergraduate
Are you self-employed with your own home office? If yes,
then do not hesitate filing for a home office tax deduction. However, there are
a couple of guidelines that should be followed to prove that your office is
legitimate. For instance, you must have allocated a certain portion of your
house specifically for business purposes. Some of the tax breaks that can be
made from a legitimate home office include; Painting and repairs, Real estate
taxes, Mortgage interest and utility charges. Beginning in 2014, Self-employed
home office owners will start enjoying a $5 per square foot tax deduction on
the space occupied by the business.
Cell Phone Deduction
Small and medium sized business normally use cell phones at
the expense of land lines as their main mode of making business conversations.
As a business owner who relies on cellphones for communication, you can claim
tax credit for the business use of the phone. You only need to ensure that you
spend 40 percent of the time on business conversations.