What Top Deductions Can Tax Preparation Services Help You Enjoy?

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tax filing for online sales

Do you do any selling online? Did you know that selling things online can count as a business and that you could be losing money if you don't prepare your taxes just right? Online sales have helped my family get through a very difficult year. Then, when I found out what I was going to have to pay in taxes for the income that I earned through those online sales, I about had a heart attack. After doing some digging, I decided to skip filing my taxes myself and took them to a professional for help. Find out what an accountant uncovered for me and how it helped put my money back in my pocket.


What Top Deductions Can Tax Preparation Services Help You Enjoy?

26 January 2023
 Categories: , Blog

As a small business owner, you're no stranger to the challenges of keeping track of expenses and staying on top of your taxes. It's important to note that the deductions above are eligible for small business owners and have different rules, so it is best to consult a professional tax preparation service. Small businesses pay an average effective tax rate ranging from 13.3% to 26.9%, depending on their legal structure, but there are various deductions you can claim. A tax preparation service can help you navigate the often-confusing world of deductions, making sure you don't miss out on any opportunities to save. Here are five deductions that a tax preparation service can help you take advantage of:

1. Home Office Deduction

If you use a portion of your home exclusively for business purposes, you may be eligible to deduct a portion of your rent or mortgage, as well as utility costs and other expenses associated with maintaining that space.

These would include such things as office furniture, supplies, and equipment. You can also deduct internet and communications costs, as well as heating and cooling costs, if your home office has separate utility meters.

2. Vehicle Expenses

If you use your car for business purposes, such as traveling to meetings or making deliveries, you may be able to deduct some of your vehicle expenses. This includes gas, maintenance, and insurance.

3. Equipment and Supplies

Your tax preparation service can claim deductions related to capital costs for major equipment and supplies. This can include anything from office furniture and computers to specialized tools and equipment. It's a big relief for cash-squeezed businesses that are looking to expand.

4. Advertising and Marketing

The cost of promoting and advertising your business is tax deductible. This includes expenses like designing and printing business cards, as well as expenses associated with running a website and social media marketing.

This is helpful because you can engage a professional marketing agency to help you promote your business and still get a tax break on the cost.

5. Employee Benefits

If you provide benefits to your employees, such as health insurance or a retirement plan, you may be able to deduct the cost of those benefits from your taxes. It allows you to run meaningful employee rewards and incentive programs for a motivated team.

It's important to note that many deductions are subject to income limits, so consult a professional to see which deductions apply to your business. With the help of a tax preparation service, you can feel confident that you're taking full advantage of all the deductions available, leaving more money in your pocket for reinvestment in your business or personal use. Reach out to a tax preparation service such as Taxes- The Balance Sheet for help today if you're a small business owner feeling overwhelmed by taxes.