As tax season approaches, there are always so many different aspects of your finances to scrutinize. When you’re running a small business, doing your taxes can seem even more complicated because sometimes your business and personal lives overlap. As you’re thinking about the write-offs to look at, make sure to keep these in mind.
You need to pay particular attention to your gas mileage when it comes to tax write-offs. If you use a vehicle for both business and personal use, you’ll have to carefully keep track of the miles related to the business work. Additionally, you can usually write-off repairs and other maintenance work related to your car if it is also connected to business driving.
When it comes to utilities, be aware of the different write-offs available to you. Often, if the internet and a phone are vital to your business, you can usually write-off some of these expenses. But if you use your phone and internet for both business and personal use, you’ll have to keep track of the percentage that is used for business-related things.
In addition to internet and phone costs, there are other utility costs you should look at. You can get a tax credit for 26% of the cost of the solar system when you file your taxes until the end of 2022, after which it will decrease annually.
When it comes to tax credits, it’s also important that you pay particular attention to business meals. As a small business, you can usually deduct about 50% of meal costs that qualify.
To make sure that a meal qualifies, you need to have the date and location of the meal, you need to have the total cost of the meal and the receipt for the meals, and you need to be able to report the name of the person with whom you had the meal. With all of these details, you will potentially be able to write off some large expenses from meals and dining.
Doing your taxes can seem like such a complicated process. There are so many different aspects to consider and it can seem difficult to make sure you cover everything. Making sure you think about some of the write-offs in this list will help you get off to a great start with your taxes.
Read this next: How to Grow Your Residual Income as an Entrepreneur