Every small business owner wants to save money — and small business tax deductions are one way to do just that.
- Vehicle Expenses.
- Home Office.
- Bonus Depreciation.
- Professional Services.
- Salaries and Wages.
- Work Opportunity Tax Credit.
- Office Supplies and Expenses.
- Client and Employee Entertainment.
What expenses can you claim for a small business?
Top Tax Deductions for Small Business
- Car and truck expenses. Most small businesses use a vehicle, such as a car, light truck or van.
- Salaries and wages.
- Contract labor.
- Rent on business property.
What can I claim on tax as a sole trader?
If an expense is for both business and private use, you can only claim the business portion. As a sole trader, you cannot claim deductions for private or domestic expenses, entertainment, fines, nor expenses relating to income that is not taxable, such as money earned from a hobby.
What can a small business owner write off?
The new tax law changed how deductions work for most taxpayers—including small-business owners. Under the new tax law, most small businesses (sole proprietorships, LLCs, S corporations and partnerships) will be able to deduct 20% of their income on their taxes.
What can you claim as a business expense?
All of the basic expenses necessary to run a business are generally tax-deductible, including office rent, salaries, equipment and supplies, telephone and utility costs, legal and accounting services, professional dues, and subscriptions to business publications.