Common And Uncommon Tax Deductions
List to review before you file your taxes this year
Posted on 05-01-2018, Read Time: Min
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When preparing for your tax preparation appointment, you calculate numerous business expenses from the year, including payroll, insurance and property maintenance. Although the Internal Revenue Service doesn’t provide a master list of eligible write-offs, you can deduct dozens of ordinary and necessary expenses that are related to your business operations. Here’s a partial list, including several common and not so common business tax deductions, you should review before you file your taxes this year.
Uncommon Deductions
As long as the deduction is for business purposes and is ordinary and necessary, you can take it. However, consider several uncommon business deductions the IRS has approved.1. Pet Food
To remove mice, rats and vermin from a business property, the company's owner adopted a cat. The animal supported the business's upkeep, so its food was deductible.
2. African Safari
A dairy farm owner traveled to Africa and researched wild animals. The trip counted as an ordinary and necessary business expense because it was relevant to and benefitted his business.
3. Private Plane
After purchasing a rental condo seven hours away from home, a couple also purchased a private jet. They successfully deducted costs for the plane’s upkeep and usage.
4. Lawn Care
Because he conducted business solely from his home, a sole proprietor deducted lawn care expenses. The manicured lawn improved the appearance of his home, allowed him to make a good impression on clients and reduced safety hazards.
5. Body Oil
A bodybuilder deducted the body oil he used for competitions since it was used for business purposes.
Common Deductions
Especially if you’ve been in business awhile, you may deduct the same expenses every year, including items on this partial list of common, deductible expenses. Remember, though, that the IRS has placed rules and restrictions on some of these deductions. For example, you can usually only deduct 50 percent of your customer entertainment expenses. Always review IRS guidelines and talk to your accountant to ensure your expenses in these categories are legitimate deductions.• Accounting fees and services
• Advertising, including print and online campaigns
• Amortization
• App creation and maintenance fees
• Auto expenses
• Banking fees
• Building repairs and maintenance
• Business association membership dues
• Charitable deductions made for a business purpose
• Cleaning and janitorial services
• Collection Expenses
• Commissions to outside parties
• Computers and tech supplies, such as electronic devices and software
• Consulting fees
• Continuing education to maintain your professional licensing or improve your skills
• Convention and trade show entrance fees and related expenses
• Costs of goods sold
• Credit card processing and convenience fees
• Depreciation
• Discounts to customers
• Education and training for staff members
• Employee wages
• Entertainment and meals for customers and clients
• Equipment purchase, rental and repairs
• Exhibits for publicity purposes
• Fleet maintenance and associated expenses
• Franchise fees
• Freight and shipping costs
• Furniture and fixtures
• Gifts for customers, typically up to $25 for each gift
• Guard animal food, shelter and veterinary costs
• Health insurance premiums • Home office and related expenses
• Insurance
• Interest paid on loans and credit cards
• Internet hosting and services
• Investment advice
• Job advertisements
• Legal fees
• License fees
• Losses due to theft
• Management fees
• Materials
• Maintenance
• Mortgage interest on your business property
• Moving and related expenses
• Newspapers and magazines
• Office supplies and similar expenses
• Payroll and prep services
• Parking and tolls
• Pension plan contributions for employees
• Presentations, such as infographs, videos and PowerPoint
• Postage
• Publicity
• Prizes for contests
• Real estate related expenses
• Rebates on sales
• Rent
• Research and development
• Retirement plan contributions
• Safe-deposit box costs
• Social media management and ads
• Software and online services
• Storage rental fees
• Subcontractors
• Taxes, including employee Social Security, Medicare taxes and unemployment taxes
• Telephone, including landline and cellphone
• Travel, including transportation, dining, hotel and laundry
• Uniforms
• Unpaid invoices and bad debts you cannot collect
• Utilities
• Video production costs for ad campaigns or everyday business purposes
• Website design and maintenance
• Workers' compensation insurance
• How to Know if Your Deductions are Legitimate
• Advertising, including print and online campaigns
• Amortization
• App creation and maintenance fees
• Auto expenses
• Banking fees
• Building repairs and maintenance
• Business association membership dues
• Charitable deductions made for a business purpose
• Cleaning and janitorial services
• Collection Expenses
• Commissions to outside parties
• Computers and tech supplies, such as electronic devices and software
• Consulting fees
• Continuing education to maintain your professional licensing or improve your skills
• Convention and trade show entrance fees and related expenses
• Costs of goods sold
• Credit card processing and convenience fees
• Depreciation
• Discounts to customers
• Education and training for staff members
• Employee wages
• Entertainment and meals for customers and clients
• Equipment purchase, rental and repairs
• Exhibits for publicity purposes
• Fleet maintenance and associated expenses
• Franchise fees
• Freight and shipping costs
• Furniture and fixtures
• Gifts for customers, typically up to $25 for each gift
• Guard animal food, shelter and veterinary costs
• Health insurance premiums • Home office and related expenses
• Insurance
• Interest paid on loans and credit cards
• Internet hosting and services
• Investment advice
• Job advertisements
• Legal fees
• License fees
• Losses due to theft
• Management fees
• Materials
• Maintenance
• Mortgage interest on your business property
• Moving and related expenses
• Newspapers and magazines
• Office supplies and similar expenses
• Payroll and prep services
• Parking and tolls
• Pension plan contributions for employees
• Presentations, such as infographs, videos and PowerPoint
• Postage
• Publicity
• Prizes for contests
• Real estate related expenses
• Rebates on sales
• Rent
• Research and development
• Retirement plan contributions
• Safe-deposit box costs
• Social media management and ads
• Software and online services
• Storage rental fees
• Subcontractors
• Taxes, including employee Social Security, Medicare taxes and unemployment taxes
• Telephone, including landline and cellphone
• Travel, including transportation, dining, hotel and laundry
• Uniforms
• Unpaid invoices and bad debts you cannot collect
• Utilities
• Video production costs for ad campaigns or everyday business purposes
• Website design and maintenance
• Workers' compensation insurance
• How to Know if Your Deductions are Legitimate
This list of tax deductions will help you reduce your company's tax burden and take all the write-offs to which you are entitled. Be sure to talk to your CPA, though, and review the current tax laws and IRS rules. Together, you can analyze your expenses and prepare an accurate tax return.
Also, keep detailed records. Your accountant will need proof of all the business expenses you wish to deduct, and you will also need these records during an audit. On each receipt, write the purpose for the expense, and store the receipts for up to seven years.
Your company can deduct a variety of legitimate business expenses. As you prepare your business tax return this year, consider these common and uncommon deductions.
Author Bio
| P.J. Taei is the Founder of Uscreen. Connect P.J. Taei Follow @uscreentv |
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