Commonly Overlooked Deductions for Small Businesses.

As a small business owner, it's important to take advantage of every tax deduction available to you, but some deductions often go overlooked. These deductions can add up quickly and save you a significant amount of money come tax time. Here are some commonly overlooked deductions that small business owners should consider:

Vehicle Expenses:

If you use your personal vehicle for business purposes, you may be able to deduct expenses related to the business use of the vehicle, such as gas, repairs, and insurance. Keep track of your business mileage and the purpose of each trip to determine the deductible amount.

Home Office Deduction:

If you use a portion of your home exclusively for business purposes, you may be able to deduct expenses related to that space, such as rent, utilities, and insurance. The deduction is based on the percentage of your home used for business purposes.

Bad Debts:

If you have unpaid invoices or accounts receivable that you've determined are uncollectible, you may be able to deduct those bad debts as a business expense.

Charitable Donations:

If your business makes charitable donations, such as to a local nonprofit organization, you may be able to deduct the value of those donations as a business expense.

Startup Cost:

If you recently started a business, you may be able to deduct up to $5,000 in startup costs, such as legal fees and advertising expenses, in your first year of operation.

Employee Benefits:

If you offer employee benefits, such as health insurance and retirement plans, you may be able to deduct the cost of those benefits as a business expense.

Education and Training Expenses:

If you attend conferences, seminars, or training sessions to improve your skills or knowledge in your field, you may be able to deduct those expenses as a business expense.