When it comes to saving money on your business taxes, it’s easy to feel overwhelmed by the sheer volume of information about what you can deduct and what you can’t. However, for small business owners, especially, it’s important to write off as much as you can in order to retain the most profit for your business possible.
8 Ways to Save Money on Business Taxes
As we move forward after the pandemic that hurt so many business operations during 2020, it’s more important now than ever to know how you can save money on your taxes. Don’t wait until taxes come due to start tracking your deductions. Know these eight ways to save money on your business taxes, and keep them in mind throughout the year.1. Deduct Rental Space
Home offices aren’t the only setup that allows you to deduct rental expenses from your business taxes. As a small business, you may not own your own office, warehouse, or other space yet. But if you rent any type of business property, you can write it off on your tax return.The business property write-off works similarly to writing off a portion of your rent for a home office. You must use your space for business purposes either exclusively or for most of the time. One unique consideration to keep in mind is that if you will eventually own the property, the IRS doesn’t consider your rent expenses deductible.
