A huge amount of people don’t claim all of the expenses and deductions that they are entitled to. Most of the time, it is because they don’t realize just how much they can claim! In other cases, the purchase was made, and they figured it was too insignificant or too large and that it couldn’t possibly be tax-deductible.

So, it doesn’t matter how big or small your business is, here are some of the biggest and best tax write-offs that you might be able to make use of.

A huge amount of people don’t claim all of the expenses and deductions that they are entitled to. Most of the time, it is because they don’t realize just how much they can claim! In other cases, the purchase was made, and they figured it was too insignificant or too large and that it couldn’t possibly be tax-deductible.

So, it doesn’t matter how big or small your business is, here are some of the biggest and best tax write-offs that you might be able to make use of.

Interest 

This one can be massive for many businesses – if you take credit cards or loans out that are for covering business expenses, the interest can be deductible. There are a couple of requirements that you’ll need to meet, though. 

The IRS will scrutinize the relationship between you and the creditor. For example, if it was a family member who gave you the money and you paid them back, that might be a little more difficult. And be sure that the accrual method of accounting isn’t in play because you can’t deduct that interest until the related person is paid. 

The loan is something that needs to be repaid; anything that doesn’t require you to pay it back will be classed as a gift. 

And finally, you have to be able to show you are legally liable for the debt – as in; it has to be your name on the details. If a friend takes the loan and gives it to you, they are liable, not you, so it won’t count. 

Personal loans and business loans should be kept separate, so if you can’t show that, this is unlikely to be accepted (another reason that business and personal accounts should be separated. 

Education

Workshops, talks, in-person courses, online courses, seminars, tutors, books (industry specific), and even the transportation to go to those classes all come under tax write-offs. 

Education costs are deductible in full, so when you can, make sure you take advantage of this. The reason that education costs are fully deductible is that they give you more expertise and increase the value of your business. The IRS will check to make sure that the education either improves or maintains those skills that are required to run your business – so make sure that there are some links, even if they feel tenuous – to show that the skills make an impact. 

Don’t make the mistake of trying to add education that would be more fitting for someone who is trying to change careers – anything you do has to be applicable to your current businesses and role to qualify. 

Insurances 

There are a huge amount of insurances, and that can mean that there are some more specific to the type of business you run. However, here is a quick run of the premiums that you can deduct from business insurance. 

• Liability coverage
• Workers compensation coverage
• Business interruption insurance (that covers lost profits if your business shuts due to fire or other causes)
• Property coverage for buildings, equipment, and furniture
• Health, delta, and vision (group) for employees
• Malpractice or Professional Liability insurance
• Auto insurance and insurance that covers business vehicles
• Life insurance for employees (as an owner, you can’t be a beneficiary, though)

If you have industry-specific insurance, it is a good idea to get in touch with an IRS representative or an accountant to make sure that if you can make a claim, you are doing so.

Business Car 

The car for business can be tricky because many people use one car for two purposes, but it is often better for taxes and for businesses to have one vehicle that is used for business. When you have one that serves both purposes, you can only deduct exactly what is used for business – and many people have trouble tracking that exact usage. 

There are two ways that you can make deductions for vehicle expenses, and it is smart to select whichever is applicable but also gives you the greatest deductions. 

The actual expenses method is where you track all of the costs of the vehicle. This includes the gas, oil changes and repairs, insurance, lease payments or price of the purchase, registration fees, tires, and more. 

You could also use the standard mileage rate, which means you just use whatever is set at the standard price per mile driven. 

You can’t apply the mileage to a vehicle that you are putting through as actual expenses, though. It is a good idea to keep track of how many miles you are driving, and there are apps where you can take photos of receipts so that you can carefully keep track of the usage. 

You also cannot add the mileage between home and an office because these are considered to be the personal expenses of commuting. 

Business Travel 

It is not just your car that you can expense. When you travel via train, bus, car, taxi, or airplane, you can claim that too. For many people, it comes as a surprise that you can also claim the cost of buying airplanes; for some businesses, it is more convenient to do this when pitched against the costs of regular flights. 

Here are some of the things you can claim when it comes to travel expenses: 

• Dry cleaning and laundry
• Business calls and communications
• Taxis or other similar car hire for travel between hotels, airports, train stations, and a work location (that isn’t your usual commute, as this would be classed as personal travel). 
• Hotels (or other lodgings) and meals 
• Shipping of samples, display materials, or baggage between your main location and the temporary work location. 

There are other expenses, but they are classified as necessary expenses that are related to your business and business travel. In general, it is a good idea to keep all of your receipts, no matter how small, while you travel – if you have an accountant, they will be able to sort through what you can and can’t claim. 

Business Meals / Entertainment 

This is a little stricter than it once was, but there is still a lot of scope for tax write-offs here. The general rule is that you can deduct about 50% of the qualifying beverage and food costs – but there are some things that you’ll need to be eligible for this. 

• The cost of the meal and drinks can’t come under what would be considered as lavish for the purpose – i.e., if a business meal for two costs thousands, that wouldn’t be accepted in most cases. 
• You can deduct the total cost of a meal for employees, and all parties, picnics, and anything at the office are also deductible. 
• The cost of the meal must be part of doing normal business – i.e., it must be with a client, customer, or other business-related purposes. 

To make sure that you can claim this fuss-free, keep all bookings, arrangements, dates, places, and prices. Plus, you’ll need to outline the relationship the person at the meal has with you and your business. As part of that housekeeping, make notes of what you have discussed with the receipt – or ask for headed paper, date it, and make notes. 

Advertising and Promotion

The boost you put on a Facebook post, the logo that someone designed for you on Fiverr, and even the cost of printing materials can be claimed. While most people know they can claim some of the cost of advertising – many people don’t know to what extent it is possible. Here are some of the places that you can tax deduct for advertising and promotion: 

• Postage for sending cards to clients (and the cards)
• Any social media campaigns, even small boosts
• Sponsoring events and teams 
• Printing for any marketing materials
• Any ad space, both online and in print
• The cost of hiring someone to design logos

Almost all activities that are marketing and advertisements have some level of tax write-off ability, so make sure that you maximize them. 

Internet and Telephone

Like the car expenses, it can be better to get a phone and internet that is only used for business. Anything that can be used for both can be called into question, and you will need to keep a very detailed list of usage to claim any deductions on it. A second landline for businesses only and a mobile that is business only can be very beneficial. 

If you’re not prepared to get separate landlines and cell phones, then make sure that you have itemized billing and highlight everything that is considered to be business. With the internet, you will only be able to deduct a set amount, and you’ll need to check what the rate is at the time of your tax return. 

Keeping an eye on your taxes is part of running a good business; without it you are going to run into trouble pretty quickly – but it is not the only area that you need to watch; here are some more: How to Handle Your Small Business Finances.