What Things Can You Write-Off As A Business Expense?

  • John A. Osborne
  • Feb 21, 2023
Small Business Insurance Maryland

Starting a business is a big undertaking, and it’s important to keep track of all of your expenses. One of the ways to save money is to understand what you can write-off as a business expense. A write-off is a tax deduction that lowers your taxable income and reduces your tax liability. But, what things can you write-off as a business expense?

As a business owner, there are many things you can write-off as an expense. Some of these things may surprise you, and others may be obvious. In this article, we’ll discuss what things you can write-off as a business expense and how to make the most of these deductions.

Home Office Expenses

If you work from home, you may be able to write-off a portion of your home office expenses. This includes things such as your mortgage or rent, utilities, and internet service. To qualify for this deduction, you must use a portion of your home exclusively for business purposes. You can calculate the amount you can write-off by determining the percentage of your home that is used for business purposes.

Travel Expenses

If you travel for business, you can write-off expenses such as airfare, lodging, and meals. You can also write-off expenses related to transportation, such as taxi fares or car rentals. However, it’s important to keep accurate records of these expenses, including receipts and the purpose of the trip. The IRS may require documentation to support your deductions.

Office Supplies

Office supplies, such as pens, paper, and printer ink, can be written-off as a business expense. However, it’s important to keep track of these expenses, as they can add up quickly. You can also write-off larger purchases, such as computers and software, as long as they are used exclusively for business purposes.

Advertising and Marketing Expenses

If you advertise or market your business, you can write-off these expenses. This includes things such as website design, social media advertising, and print ads. You can also write-off business cards and other promotional materials. However, it’s important to ensure that these expenses are directly related to your business and not personal expenses.

Professional Services

If you hire professional services, such as lawyers or accountants, you can write-off these expenses. This includes the fees you pay for their services, as well as any travel expenses related to meeting with them. It’s important to keep accurate records of these expenses, including invoices and receipts.

Conclusion

As a business owner, there are many things you can write-off as a business expense. From home office expenses to professional services, keeping track of these expenses can save you money on your taxes. However, it’s important to ensure that these expenses are directly related to your business and that you keep accurate records to support your deductions.

Remember, if you’re unsure about what expenses you can write-off, it’s always best to consult with a tax professional. They can help you navigate the complex tax laws and ensure that you’re taking advantage of all of the deductions available to you.

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