Have you been wondering about how to get the most out of your business taxes? I've got some tips for you.
Mortgage/Rent and House Bills
So let's say you live in a house that is 1,000 square feet home. If your home office is 100 square feet, then you 10% of your mortgage is tax deductible! Not only that but 10% of your utilities and homeowners' insurance are tax deductible as well. You heard me, your business is helping cover some of your house bills, and it's completely legal.
Phone and Internet
These are biggies, because 99% of us use our phones and internet for business. Whether it's to talk with clients, or for marketing purposes (social media), your phone is a key player for your business. How much do you use your phone for business? 50%? 75%? Whatever this number is for you, the business will cover it. For instance, I use my phone for business about half the time. So half of my phone bill every month is a tax deduction. Same goes for the internet. If 50% of your internet is being used for business, then that much of your internet bill is tax-deductible.
Health and Dental Insurance
Who provides your health and dental insurance? It is important to note that if you receive your insurance plan through the marketplace, it is NOT tax deductible. If you don't, your health and dental are 100% deductible.
Do you drive for your business? As of 2019, 58 cents per mile driven is deductible on your taxes. Want an easy way to keep track of this? The Quickbooks app tracks it for you. There are so many other mileage-tracking apps to choose from, so feel free to shop around. If you're feeling like you want to manually keep track of this in a spreadsheet, that is a viable option as well.
Realizing it's time to invest in an accountant? I'm happy to help. Feel free to check out my website and fill out a contact form, or email me directly: mailto:email@example.com
Willow Creek Financial Services
Buy from a Black Woman Contributing Writer
Lauren formed Willow Creek Financial Services <https://www.willowcreekfinancials.com/> with the purpose of helping you, the small business owner, have peace of mind and confidence about your financials. With an accounting degree and years of accounting experience behind her, she is here to help you grow your business.