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5 Small Business Tax Write-Offs You Really Need

Tina Samuels

September 11, 2013

All season is tax season for owners of small business.

No matter what you're doing, you should stop and take stock of all the tax write-offs you may have missed.

Did you know you could save thousands by double checking your taxes? Then, triple check. Be positive that you haven't missed all of those write-offs.

Let's look at five that can help you avoid spending out all of your profits to the IRS.

Hire A Veteran?

If you hired a veteran you might just be able to write this off.

Tax credits for companies that hire veterans have been in place since the Hire Heroes Act of 2011. The veteran must have been unemployed for about a month (4 weeks) for you to be able to claim this write off. Besides, who doesn't want to provide a job to the people who protected our freedoms?

Don't hire a vet for this deduction - do it to help a veteran and their family. You can claim the write off and then put any savings toward helping your business grow in order to keep hiring.

Start Ups

If you've just started your business during the year you can claim up to $5,000 for start up and $5,000 organizational fees. If you decide to make any other claims related to start up costs they must be amortized.

These claims take longer to process by the IRS as they must be assessed by a person instead of digital means.

Training

Any and all fees that are related to training can be deducted. There is no limit to the amount that can be claimed.

These costs include training seminars, books, classes, and certificates. You can also deduct fees that you pay for professional organizations. You can also deduct the cost for training or educational software.

Health Care

For all businesses that provide employee health care there is a 35% credit.

This credit only applies to businesses that pay 50% or more on employee insurance premiums, have less than 25 full time employees, and wages paid are below $50,000 annually. This credit will help offset any costs associated with the new healthcare regulations that will be implemented over the next few years.

Donating to Charity

Charitable donations are often claimed by individuals and businesses. Small businesses that make such donations, whether locally or on a larger scale can use these write offs.

The contributions must be made during the tax year. The donations can be fair value of property which does include any inventory, products, labor, or cash. There is no limit to the amount that can be claimed, though each donation must be itemized properly.

These are only a few of the available deductions you can use in your tax preparation.

Every year you may also claim travel, meals, entertainment, and even moving costs if you move your business more than 50 miles from your original location.

Consult your accountant or tax professional before making deductions to ensure you are deducting properly.

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