Top 10 Small Business Tax Savings You May Be Missing

As the tax deadline approaches it’s time to start thinking about how to minimize that tax bill, or even better—maximize that refund.
Take a look at this list of Top 10 Tax Savings You Have Missed to squeeze a little more out of your return.

Savings #1 – Initial start-up costs

If 2014 was your first year of operation, and if you made your first sale during that period, you can deduct some or all of your business’s start-up costs. As long as your total start-up costs were less than $50,000, you can deduct $5,000 in general costs (things like buying equipment or renting space), as well as another $5,000 in organizational costs (legal fees, professional consultations, etc.).
Savings #2 – Insurance Premiums

Insurance can help give business owners valuable peace of mind since, let’s face it, accidents happen. Luckily you can claim most insurance premiums on your taxes to help make coverage a little bit more affordable. Not all premiums are deductible but most common ones are, such as liability, malpractice or fire insurance.

Savings #3 – Home office

Plenty of freelancers and small business owners believe taking the home office deduction puts you at higher risk of an audit, but that’s not necessarily true. Even if this were the case, the financial impact of taking this deduction correctly would be worth the risk (assuming you have documentation to back up all your claims).

If you do decide to claim your home office as a deduction, be sure to follow IRS guidelines in regards to calculating the space that qualifies. Then, be sure to account for any overall utility costs that contribute to running your space.

Savings #4 – Credit card processing fees

While many consider them an unretrievable cost of doing business, credit card processing fees are still a business expense. Meaning they’re deductible on your small business taxes! Your processor should provide you with a record of the fees you incurred throughout 2014 (if not, call and ask for these records to be provided). So, deduct those numbers from your taxes and make up for any lost revenue.

Savings #5 – Continuing education

Continuing education should be a major priority for all small business owners and self-employed workers (and the IRS wants to help you make it so). If you’ve attended any seminars, training courses or conferences throughout the year, the bulk of your costs will likely be deductible (but keep in mind that deductions for dining costs associated with conference trips are limited to 50% of the total bill).

Savings #6 – Business gifts

Business owners encounter a number of different occasions where giving gifts to clients is perfectly appropriate. Ever sent a fruit basket to celebrate closing a big deal? Or printed up jackets to give away to top customers? Add these items to your deductions list, gifts made to customers and employees up to $25 in value are 100% deductible on your taxes (nice).

Savings #7 – Health savings accounts

If you have a high-deductible health plan or offer this type of insurance to your employees, it’s worth your time to determine whether or not you’re eligible to tie a health savings account (HSA) to your plan. If you are, setting up this type of account will let you put money away for future medical expenses, in addition to letting your contributions grow (tax-free!!) over time.

Savings #8 – Child labor

We’re not recommending sweatshop labor or inappropriate work practices, but if you have a dependant child who handles work tasks for your business, you can employ them without paying the all of the same payroll taxes you’d pay for an older worker—and potentially claim part of their salary as an expense on your tax return.

This break is only available, however, if your business is structured as a sole proprietorship or as a partnership between you and your spouse. If you’re set up as a corporation, you will not be able to claim this deduction.

Savings #9 – Pet supplies

It’s not crazy talk. If you operate a farm and keep a guard dog on premises for the protection of livestock/crops, you may be able to deduct the costs of its care, including dog food, bedding and veterinary care, as a legitimate expense. Note though that deducting pet supplies requires a verifiable business purpose. ‘ol Fido warming your feet while you work on the computer won’t cut it with the IRS.

Savings #10 – Your FreshBooks subscription

FreshBooks isn’t just a great tool for getting a hold of your business’s finances—it’s also a valuable tax deduction. Most tax advisors agree that software-as-a-service (SaaS) products should be included in the “Other expenses” category of your tax saving plans reports, as they don’t involve a purchase that loses value over time.

Source: http://www.freshbooks.com/blog/top-10-small-business-tax-savings-you-may-be-missing/