2016 new tax write offs for small business owners

If you pay a salary to employees, then you can deduct some of those costs from your business revenue. Replacing lightbulbs and other consumables.Miscellaneous stationery like pens, pencils, staples, elastic bands, paperclips, etc.Specialized equipment not covered elsewhere.Purchase of software applications and programs.Shelves, filing cabinets, and storage units.You can make additional deductions on money you spend for your business office. You can claim a percentage of your mobile phone bill depending on how much you use your mobile phone for business. You cannot claim a telephone landline unless it is specifically dedicated to your business.

The IRS also provides a simplified option for expensing home office costs.If you work from home, you can only deduct a proportion of your household bills, dependent upon the percentage of your home used for running your business.If you have a dedicated building for your office, you can deduct all of your business costs associated with the expenses your business incurs.These tax deductions include costs associated with renting a building for business, using part of your home as an office, utility bills, and other factors. Rent, Mortgage, and Utility Tax Deductions Speak to your tax preparer for more information.

Note that some of the expenses listed below will need to be “ depreciated ” or expensed over several years. As always, check with your accountant or tax preparer if you have any questions or need clarification. We’ve created a checklist below of the most deductions you can claim for your small business. While the IRS does not specifically list what you can claim, they do state that if a cost you’ve incurred is “ordinary and necessary” to running your business, then you can deduct it. These deductions will reduce your profits, meaning that you will pay lower overall taxes.

The great news? There are many expenses you can apply to your income to help alleviate your tax burden. The not-so-good news? Every business needs to file taxes.

2016 new tax write offs for small business owners