Owning a small business can be somewhat of a double-edged sword, especially when it comes to taxes. A small business allows you the freedom of setting your own hours and making as much money as you’re willing to work for. On the other hand, however, there is a variety of red-tape that comes with running a business that can make it feel as if it is more of a hassle than it is worth. Fortunately, there are plenty of small business tax breaks that can be taken advantage of.
If you own a small business and are paying for your own health care, you may very well be eligible for a tax credit. As health care can amount to quite a bit of money over even a short period of time, this is an important credit for any small business owner to take. In order to receive this refund, you must pay at least half of your business’s health care bill. If you are in a small business with either another person or simply yourself, this is an ideal credit to take advantage of.
Many small business owners work out of a home office without realizing that they can apply for a write-off. The fact is, you can write off many of the expenses that your home office makes up. Talk to a tax professional for more information as to how you can use this to your advantage, as you may be able to save a great deal of money in the end.
If you travel on a daily basis for your job, you will most likely be able to write off the expenses. Many people travel hundreds of miles each week without realizing that this can all be written off. Like home office write-offs, it is wise to speak to a tax professional regarding this matter.