If you’ve recently started your small business, you may run into a few financial hurdles. The good news is that there are many write-offs available for your small business. You want to have a tax advisor go through your books and prepare your taxes. However, you should still be aware of what opportunities exist out there for you. Here are just a few of the write offs that professional tax preparation services in Nanaimo can find for you.
Business Expenses
You’re going to pay many business expenses to start your business, satisfy your customers, and keep your business up and running. These can be deducted once you’ve started your business. Some expenses to expect when you start your business include:
* Logo design
* Legal paperwork
* Research and development
* Rent
* Business insurance
In your first year, you may be eligible to receive up to $5,000 from your capital expenses. However, after the first year, they must be deducted in equal amounts every year.
Business Entertaining
50% of entertainment expenses may be deducted. These include hosting galas, auctions, and fundraising events. You may also be eligible for a write-off if you go to an entertaining event before or after a business meeting.
Travel Expenses
If you must travel for business, you could be eligible to deduct those expenses incurred while on the road. A few expenses to keep in mind include:
* Airfare
* Cab fare
* Hotel arrangements
* Meals
* Vehicle rentals
Remember, these expenses must be directly related to your business though. If you were to bring your family along with you, you may only write off your own personal expenses.
Continuing Education in Your Field of Business
You could qualify for a deduction if you continue your education. Your educational courses must be to improve your skills for your business, not to keep your qualifications up to date. For example, if you are a realtor and you want to become a broker that may qualify. However, if you are looking to keep your license up to date, that would not.
Internet and Phone Services
These subscription services used for your business can be written off. That also includes a cell phone used for business purposes only. Any activity related to personal reasons does not qualify for business deductions. It’s best to have a separate phone if you want to qualify for this deduction.
You have enough hidden costs of running your business such as association fees, permits, paying employees, and office expenses. Receiving a taxable deduction is a great way to keep yourself from drowning in these expenses. If you are looking for tax preparation contact J A Smith & Associates Inc. To know more follow them on Google+.
