COMMON TAX DEDUCTIONS FOR SMALL BUSINESSES

Small businesses can reduce their tax burdens by taking advantage of common tax deductions. Business expenses, including rent, utilities, and office supplies, are deductible, helping to offset operational costs. Self-employed individuals can claim a portion of their home expenses if they have a dedicated workspace. Employee wages, benefits, and contributions to retirement plans are eligible for deductions. Travel and entertainment expenses related to business activities are deductible, though subject to certain limitations. Start-up costs and depreciation on assets like equipment and vehicles offer further tax relief. Familiarity with these typical deductions empowers small businesses to optimize their tax strategies and retain more of their earnings.