Tax benefits for Small Business Owners

published by:thehyperbusiness.com

There are a number of tax breaks and deductions available for 2023 that many business owners don't know about.

Let's explore them

Energy conservation costs

You can claim 30% of the cost of alternative energy equipment, including solar panels, solar water heaters, and wind turbines for your home.

Business meals

Small businesses can deduct 50% of food and drink expenses related to their business if they maintain the documentation of date, location, and cost of the attendees.

Business Travels

Expenses related to business travel such as flight tickets, stay costs, car rental fees, service charges, dry cleaning, dining costs and many more.

Business on wheels

If you use your vehicle solely for business purposes, you can deduct all expenses related to operating and maintaining it.

Phones and Internet

Similar to vehicles, you can deduct your phones and internet expenses. However, only the percentage of the cost related to business use can be deducted if used for dual purpose.

Home based business costs

Home-based small businesses and freelancers can deduct $5 per square foot of their home used for business purposes, up to a maximum of 300 square feet.

Educational expenses

Any educational expenses that improve your skills or maintain your professional expertise, including courses, classes, seminars, webinars and more.

Home loan Interest

Home business owners can deduct mortgage interest payments if their home is used for business purposes. Interest on home equity loans can also be deducted.

Medical Expenses

You can claim both insurance premiums and medical care expenses, including physician's Charges, medical Bills or healthcare Costs.

Charitable donations

If you are set up as a sole proprietorship, LLC, or partnership and have made charitable donations you can claim these expenses on your personal tax forms.