When starting a small business, entrepreneurs usually direct all their resources and efforts toward making money.
And rightly so. What good is a small business if it doesn’t generate revenue?
But Income.com wants all entrepreneurs to know that just as important as making money is protecting the money you’ve earned.
How, you ask? Through cost-saving avenues afforded to you by tax deductions that many small-business owners may be oblivious to. Sometimes, ignorance is not bliss.
There are numerous opportunities for entrepreneurs to write off expenses, it’s just a matter of knowing when and where you can. Such knowledge may prove to be the difference between a stagnant business and a startup with limitless potential for growth. Travel expenditures, vehicle costs, even relocation expenses can be deducted on your taxes.
Save Money When You’re On the Road
Small-business owners are well-traveled individuals. Whether you’re traversing the highways to meet a potential client in the next state over or hopping on a plane to court investors across the pond, small-business owners might not know it, but they can deduct big money off travel expenses.
For instance, the U.S. Internal Revenue Service (IRS) allows you to deduct 56.5 cents per business mileyou drive during 2013. And considering the price of gas nowadays, any way for you to get more bang out of your buck is a big plus. You can also deduct 24 cents for every mile you drive for medical or moving purposes, as well as 14 cents per mile driven for charitable organizations.
In the instance your travels take you outside the country, if your trip lasts fewer than seven days, you’re eligible to deduct transportation costs and destination expenses for every day you work overseas. All the good stuff regarding travel expenses is found in IRS Publication 463.
Take Advantage Of Tax Deductions During Your First Year
One of the easiest ways to cut business startup costs is making use of tax deductions that are applicable during your first year of business. If your enterprise had startup costs of $50,000 or less, you can deduct up to $5,000 while you’re still getting your business established. This allows you to deduct necessary expenditures like advertising, utilities, office supplies and repairs.
Income.com knows entrepreneurs often stress about how much money they first have to spend in order to get their dream business off the ground. But there’s a simple remedy to the stomach knots you might feel: tax deductions. They apply in a variety of scenarios and are among the most important resources small-business owners can use when trying to minimize business startup costs. Whether you’re hitting the road or launching your first marketing campaign, deduct wherever and whenever you can.