Deductions for Small-Medium Businesses

As a business owner, you should be familiar with the expenses you are entitled to claim. This Checklist for Small to Medium size businesses is here to help you become aware of what consitutes a tax deductible expense. This list is by no means complete, as a complete list of deductible expenses is quite extensive and may vary depending on the nature of your business. To learn more about tax deductions that are unique to your business you should consult with your accountant or professional tax consultant. Please don’t hesitate to contact us with any questions.

Income

  • Gross receipts from sales or services
  • Sales records (for accrual based taxpayers)
  • Beginning inventory (if applicable)
  • Ending Inventory (if applicable)
  • Items removed for personal purposes (if applicable)
  • Returns and allowances
  • Interest from Business checking / savings account (1099-INT or statement)

Vehicle & Travel Expenses

  • Motor vehicle lease payments, repair, oil changes, tires (for business)
  • Gas and mileage
  • Log or receipts for public transportation (local)
  • Parking fees, tolls
  • Airfare
  • Hotel accomodation
  • Meals and tips
  • Business entertainment & tips
  • Laundry
  • Internet connection (hotel, Internet café, etc.)
  • Costs of passports for self, employees traveling for business purposes

Business Expenses

  • Mortgage Interest on building owned by business
  • Interest & Fees on Business Loan
  • Office Space rent
  • Equipment, Furniture or vehicle purchase
    • Depreciation of equipment, furniture, vehicle
    • Lease Payments
  • Maintenance, Repairs (building, grounds, equipment)
  • Business Insurance including:
    • Equipment or machinery
    • Casualty loss
    • Errors and omissions
  • Property Tax
  • Short-term capital loss, bad debts or uncollectable receivables

Additional Expenses

  • Advertising & Promotional
  • Bank Fees (check charges, monthly charges, bank wire & overdraft fees)
  • Business Gifts
  • Business-Related Education (courses, classes, seminars, educational tapes or video)
  • Charitable Contributions
  • Commissions paid to sub-contractors (1099-MISC & 1096 as necessary)
  • Depreciation (sales price & disposition date of any assets sold)
  • Employess Salaries
  • Retirement Accounts for Self & Employees
  • Self-employed Insurance premiums
    • Health, Dental & long-term care
  • Insurance expenses
    • Fire & liability, malpractice
    • Premiums for Motor vehicles
    • Employee life insurance benefits
    • State unemployment insurance contributions (employer)
  • Losses from theft, fraud, damage from natural disasters
  • Meals & Entertainment
  • Membership Dues
  • Moving Expenses
  • Office Supplies (paper, pens, staples, other consumables, etc)
  • Postage & Shipping
  • Professional Fees (legal, accounting, bookkeeping, architectural, business consulting, marketing consulting)
  • Software Costs
  • Telephone & Telecommunications (phones, internet, television & other communication uses for business purposes)
  • Trade Show Exhibition and/ or Attendance
    • Travel, Meals
    • Admission Fees
    • Costs of booths, exhibits
  • Utilities

Financial Tools

Here are some useful and FREE Open Source Tools to help you maintain your records. Open Office works like MS Office and can also open MS Office files. Use PDF Creator if you need to publish a document that will open with Adobe Reader.

OPEN OFFICE
PDF CREATOR

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CANADA : 647.638.3904
EMAIL : arun@aruncpa.com


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