One of the most effective ways to increase business revenue is by taking advantage of all available small business tax deductions. You will make informed decisions on managing the current year’s expenses and smartly allocate funds for next year.

The following is a helpful list of small business tax deductions that can significantly lower your company’s taxable income for 2017 filings:

1. Insurance

Do you pay for a commercial insurance policy or malpractice insurance? Do you pay property insurance for your business location? All insurance costs are tax-deductible, so keep track of your annual premiums.

When it comes to health insurance, there is the possibility for a small business tax credit related to premiums, but there are specific rules that apply to self-employed individuals and more-than-2% S corporation shareholders. During our tax planning consultation, we’ll help you understand how these laws apply to you.

2. Travel

Traveling for business is a tax-deductible expense. However, it’s important to keep good records as the IRS standards strictly differentiate between personal (such as regular commuting costs) and business driving, and there are substantiation requirements to make the business eligible for the deduction.

Talk to us to learn more about how the IRS classifies the difference between commuting and business driving.

3. Home Office

For small businesses that operate out of a home, there’s a significant deduction for home office space as long as the room is used regularly and exclusively as the principal place you do business. This deduction includes both your indirect costs (rent, mortgage, and utilities) and direct costs (painting or remodeling).

The calculation on your total deduction will depend on the number of bedrooms and living areas and you’ll need complete records of all housing bills for 2017. Bring this information to our team and we can give you an accurate estimate of how much you’ll be able to deduct.

4. Legal Fees

Have you consulted with a lawyer at any point this year? All legal fees related to business are fully tax deductible. When paying for consultations on business planning or employment law, retain all payment records for your accountant.

5. Subscriptions and Professional Development

Did you buy new software or sign up for an industry-relevant magazine or service subscription? You can claim these on your business taxes. If you’ve traveled to an industry conference or invested in furthering your professional knowledge through educational courses, these costs are also tax-deductible for businesses. The same applies for costs related to employee education.

6. Advertising Costs

You may already know that direct advertising costs are deductible, such as sending direct mailers or taking out a newspaper ad, but there are likely other ways you advertise that you can also deduct. Did you sponsor a Little League team? How much do you pay to maintain your website? All of these costs lower your taxable income as well. Whether you paid to print business cards or financed a workshop event designed to accrue more clients, advertising and promotional costs are fully tax-deductible.

If you need help clarifying which tax deductions you qualify for, the experts at Robert L. Coval, CPA have years of experience helping our clients find the small business tax deductions that help them worry less about tax time and focus on growing their business. Contact us today and set up a time to get your taxes filed before 2018 deadlines.

2018 Business Tax Deadlines for 2017 Tax Filing

For December 31, 2017 Year Ends

Entity Type Tax Deadline Due Date
Original deadline for partnerships (Form 1065) and S Corporations (Form 1120S) March 15, 2018
Original deadline for C Corporations (Form 1120) and individuals (Form 1040) April 17, 2018
Original deadline for exempt organizations (Form 990) May 15, 2018
Extension  deadline for partnerships and S Corporations (with  valid extensions filed) September 17, 2018
Extension deadline for C Corporations and individuals (with valid extensions filed) October 15, 2018
Extension deadline for exempt organizations (with valid extensions filed) November 15, 2018