03 Apr 3 Business Deductions Commonly Missed
As a business owner, you are likely always trying to do all that you can to reduce your tax liability, while still following every letter of the law. Unfortunately, this can be difficult without proper direction from tax professionals. Below are just a few of the deductions that business owners commonly miss.
- Home office deduction – Many people do not claim a home office deduction on their taxes because of the complicated stipulations which must be met to apply. As of 2013, the IRS now offers a simplified option that allows home based business owners to more easily claim this deduction. The new deduction which is capped at $1500 per year is based on a $5 per square foot for up to 300 square feet. If you have questions on this important deduction, ask a tax professional in the DC metro area such as Accurate CPA Services.
- Meal Expenses – Many times business owners will use personal money to pay for business meals with clients or potential clients. These expenses are deductible up to a certain percentage. Generally, 50% of your meal and entertainment expenses are deductible, but if you have questions, it is worth it to check with your local CPA in DC.
- Health Insurance – As of 2002, if you are self-employed then you are able to deduct up to 70% of your health insurance premiums. This is a deduction that is often overlooked by small business owners.
Accurate CPA Services – Your Small Business CPA
Running a business is a job that never stops, especially when it comes to tax time. If you are confused as to what you should be deducting, you would be wise to consult a tax professional in the DC area. Accurate CPA Services has been providing small business accounting services to a large number of clients for several years and would be happy to help you with your 2013 taxes. Contact our office today at 301-684-5166.