Small Business Tax Deductions: Benefits & Requirements
Most small business owners cite doing their taxes as one of the most stressful and worrisome aspects of owning a business. Business taxes can be an incredibly tricky task and any wrong turn can have a detrimental effect on your business. On top of all that pressure, tax regulations and deductions vary by location and change constantly. Ensuring that you are in compliance while also maximizing your returns requires precise record-keeping, knowledge of state-specific regulations, and a deep understanding of available deductions. As such, it’s vital to consult with a professional tax firm like Watkins & Co. when determining your small business taxes and deductions.
What are the Benefits of Small Business Tax Deductions?
Small business tax deductions in Mississippi can be extremely beneficial for your company, in that you can save a lot of money on taxes with the proper write-offs. How much money does business tax deductions save you? That all depends on your business and the area where you conduct business. In most areas, business deductions reduce taxable income, resulting in more cash flow through your pockets. Navigating the available deductions effectively is something that a local CPA or accounting firm can assist you with, ensuring that you get maximum returns while following the letter of the law.
A Guide to Small Business Tax Deductions in Mississippi
How do tax deductions work for small businesses? In Mississippi, some of the most common deductions are listed here. However, please note that this is an ever-changing landscape and it’s always best to consult a professional accountant for the most current Mississippi small business tax deductions and local regulations on write-offs.
Business Vehicle or Work-Related Car Use
You can deduct expenses related to the use of a business vehicle or the use of your personal vehicle for work. Depending on the situation, this may include mileage, fuel, maintenance, and insurance.
Industry Relevant Education
Any start-up or ongoing education that pertains to your business or industry is tax deductible, for both you and your employees.
Salaries & Benefits
If you have employees who are a necessary part of your business, you can often write off their salaries and vacation time. Additionally, you can deduct the cost of providing Benefits, such as health plans and retirement contributions.
Business Finances: Interest & Bank Fees
You can claim certain interest costs on your taxes, such as mortgages for business properties, loan interest, credit cards, investments, real estate, and some others. Which interest can be deducted and the related limits on deductions vary by location.
Professional Services
The adage “you have to spend money to make money” is true in this case! Not only is hiring a professional accountant or CPA tax deductible but our in-depth knowledge also maximizes your deductions and savings.
Business Expenses
Besides the above listed, you can typically write off expenses that are necessary to the general operation of your business. This includes but is not limited to:
- Business Insurance
- Office Supplies or Home Office Expenses
- Communication: Phone & Internet
- Travel Expenses
- Medical Expenses
- Depreciation of Business Equipment
- Advertising & Marketing
- Charitable Donations
There are many more deductions available than those listed here. Consult a tax pro at Watkins & Co. for tax deductions specific to your small business.
Best CPAs for Small Business Taxes Jackson, MS
Mississippi CPAs, like the team at Watkins & Co. can find creative tax deductions for small businesses and explain clearly how business write-offs work. Having an in-depth understanding of deductions for which you’re eligible enables you to keep the proper records throughout the fiscal year and maximize deductions that are available to you. If you’d like professional assistance with your small business taxes and deductions, contact Watkins & Co. today. Our tax professionals are standing by, waiting to help you maximize your tax savings and promote the ongoing growth of your small business!