So you run an LLC and you know that before long it will be time to file taxes. Everyone knows that paying taxes are not fun at all, but with deductions it can reduce the amount you owe and thus make it a little more bearable. The following list should help you by showing you some not so well know deductions that you can write off. I am not a tax professional, so all information should be gone over with your tax preparation company.
First-Business Insurance: So most businesses carry some form of insurance to protect themselves as well as the customers they work for. And we all know that business insurance is not cheap at all. So the IRS will let you write off the cost of having business insurance, and that is great news for many small business owners.
Second-Health Insurance: Since everyone has to have health insurance now, you might as well take the write off for it. If you own a small business and pay out of pocket for your health insurance you can write that expense off of your taxes. That includes insurance for you and your spouse as well as children up to 27 years old.
Third-Employee Pay: Paying employees is often the largest expenses that a business has. Writing off this expense will be huge for many owners. According to the IRS, as long as the expenses are reasonable you are allowed to write it off! So as long as you claim that your employees made a reasonable wage, there should be no problem.
Fourth-Home Office: Now everyone knows that an office can be a write off, but what happens if you run a service business that works at the client’s home or office? The IRS says that you can write off a home office as long as you use that portion of your home ONLY for business. You also need to use it on a regular basis. That can be only once a week if you use that space to do paperwork like invoicing and payroll. When you use the home office write off you also get the chance to write off a good amount of other things. Some of them are water and electric, repairs and even landscaping. Don’t forget the housekeeper as well!
Fifth-Training: If you bought some training DVDs for the office staff, or paid for the sales team to go to a training seminar then you are in luck. All training and education expenses used to further your current area of business can equal a large write off for you. So don’t be afraid to throw out the old VHS tapes sitting on the shelf collecting dust. Don’t forget that when you replace them, you need to watch the new ones!
Hopefully this list will help reduce the pain associated with filing taxes. These are just a few of the many write offs that the IRS offers to business. Don’t forget that a tax prep company should be aware of all the different write offs and what you do and don’t qualify for. But remember above all else, don’t take a write off if you didn’t earn it!