A guide that helps small business owners avoid tax mistakes and act on opportunities that can save them money.

1. Check online for updates, as tax
laws are constantly changing.
Keep receipts and
documentation when possible.
Uncommon Tax Deductions
SMALL BUSINESS GUIDE
To Overlooked & Uncommon Tax Deductions
STARTUP COSTS
A portion of costs incurred even before your business launched can
be deducted (e.g., expenses associated with creating the business,
consulting fees). Up to $5,000 might be deductible in your first year.
HOME OFFICE
Slightly more than half of small businesses operate from home,
yet only about a third of returns filed by sole proprietors in recent
years included a claim for a home office deduction. The home must be
the principal place of business, and the space you devote to business
must be used exclusively for that purpose. A percentage of your
Internet and phone bill used for business also can be deducted.
AUTO EXPENSES
The portion of your vehicle use that goes for business purposes is
deductible, including commuting to other business locations if you claim a
home office as a deduction. Don’t overlook trips to the bank, post office,
etc. — and tolls and parking fees, too. With a newer car, using the actual
expense method might benefit you because of depreciation as well.
TRAVEL EXPENSES
Many of the expenses associated with travel (including airfare,
hotels and dining) can be deducted — even when the trip is a mix of
business with pleasure. The keys are the length of the trip, and
conducting business must be the primary purpose of the trip.
MISCELLANEOUS EXPENSES
Minor expenses can escape your attention, but if they’re
ongoing, they really add up. Examples: bank fees, business association
dues, magazine subscriptions, coffee services, cable and Wi-Fi for
your customer service area, postage, etc.
BONUS DEPRECIATION
You may be able to write off the cost of new equipment in full
(up to $500,000) in the year you bought it. In addition, a first-year
bonus depreciation deduction is available through 2019.
ADVERTISING AND PROMOTION
Not all of your advertising and marketing activities are ongoing.
Expenses for infrequent undertakings such as printing business
cards, or sponsoring a youth sports team also are deductible.
CARRYOVERS
Certain expenses that you could not claim as
deductions in previous years — such as capital losses that
were subject to annual limits — may be deductible.
MISCELLANEOUS
One-time expenses, by definition, are uncommon. Some
examples: videotapes that supplement your business skills,
casualty or theft losses, consulting fees, trade show fees.
BAD DEBTS
The costs of goods sold but not paid for can be written off. Loans to
employees or vendors that are not repaid also may be deductible.
Overlooked Tax Deductions
Many small businesses miss
opportunities to save on taxes.
Here are some overlooked and uncommon tax
deductions that could help remedy that.
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