One of the benefits of being a small business owner is the number of small business write offs the IRS permits owners to take on their tax returns. These write offs allow owners to avoid paying taxes on the money they spent to run their business; this not only reduces the amount of an owner's tax obligation, but also permits an easier flow of cash.
Keep Every Receipt
Yes, you've heard it before, but keeping a receipt of every one of your business expenses provides you with proof--should the IRS request it--of your claimed write offs. It also ensures that you won't forget any write offs at the end of the year.
Investing in the services of an accountant or tax attorney not only makes it more likely that you'll file your business taxes properly, but also just might result in your being able to take more deductions than you realized. After all, part of an accountant's job is to find his clients more ways to save.
Don't Forget Your Start-up Costs
If you opened your doors this year, you can deduct a large percentage of the costs associated with doing so. Marketing, advertising, employee training and attorney's fees for setting up the business and other costs can be deducted from your taxes, up to a maximum of $5,000.
Look beyond Office Supplies
Sure, you most likely know that you can deduct the cost of office supplies, but what about the miles you drove in your personal vehicle, uniforms or entertaining potential customers? Yep, those can also be deducted. Walk through each piece of your business to identify whether you can write it off on your taxes, if you've got questions, the IRS website will likely provide the answer.