Small Business Tax Tips to Maximize Your Tax Return

Small Business Tax Tips to Maximize Your Tax Return:

As millions of small business owners get ready to file their taxes, they will be searching for exemptions that might be possible for their business. Luckily, there are many exemptions and credits that owners can take advantage of. By writing off certain expenses, a business owner can significantly reduce their tax burden and put the extra money towards growing their enterprise.

First off, you must understand the difference between a credit and a write off. A credit is a dollar for dollar deduction from your taxable income. An exemption will qualify for only a percentage. Following is some useful small business tax tips that you can apply to help you maximize your tax refund.

Auto repairs and mileage (1:20) —
Anyone in business has expenses relating to using a car. Unless your job is done from 100% cyberspace, you have to leave the house to meet with clients, network and pick up supplies. If your job is significantly sales oriented, this mileage can really add up. You can use a standard rate of 55.5 cents per business driven mile. That is not all though. If you use a newer vehicle, you can write off the additional depreciation related to your business expenses. Of course, if you use the car for both business and pleasure, you are only allowed to write off business miles.

New business exemption (2:28) —
If you are a starting up a small business you are allowed to deduct up to 00 for the first year that you are in business. This deduction is for things like supplies, utilities and repairs. This is for start ups only and only applies to the first year of your new business. You can either take the 00 in a lump deduction, or you must deduct it in equal amounts over a period of 5 years.

Bad Debts (3:39) —
If a customer stiffs you over a certain amount, you can claim it as bad debt and write it off. This bad debt deduction is only for products and is not for services.

Interest (3:53) —
Most businesses do not start up without a little bit of financing. If you have a loan or credit card that you use, the interest on loans are completely tax deductible. Keep all your receipts in the event you get audited, so you can prove the charges were business related.

Advertising and Promotions (4:54) —
Of course, this means big things like commercials, but it also means small things like business cards and stationary. If the item is used to promote your business, then it is tax deductible. The expenses of networking, like attending conferences and taking clients out to lunch are also deductible. If you are doing it to grow your business, then it is a deductible expense.

If you started a new business and are getting ready to file your small business tax, your best bet is to talk to a CPA. There are virtually thousands of credits and exemptions that can be claimed for a new business. A CPA will be familiar with those credits and exemptions, so they will be able to maximize your refund. In addition, they will be able to tell you if certain things aren"t allowed, of if your claiming expenses that are too high, and they will help you avoid the headache of an audit.

To Your Success,
Andrew Shin


  1. HomeBusiness TaxCoach

    Good job in sharing the news about the benefits of tax advantages and home
    business. We would love to chat with you as we are always looking for like
    minded people to help us spread the word! 🙂

  2. Otto Zepeda

    Hey Andrew,Thanks for sharing the info I about tax advantages.I’d like to
    know more helpful ways in how I can benefit as business owner from home my
    friend.Shoot me a friend request on facebook…com / ottozepeda Peace!

  3. imtips101

    Hey Otto, I will send you a friend request soon. It’s great that my video
    gave some value 🙂

  4. Jon Cvack

    Hey Andrew, Can you link to the New Business Exemption? I can’t seem to
    find it.

  5. nishipishi

    I like your smile 🙂

  6. Toney Greer

    Thanks! Watching this video definitely gave me a lot of insight of how to
    maximize my taxes. I have more questions about the way I am supposed to
    file tho. Could you help answer more questions I have?

  7. Matt Conway

    Irs is the 1 dislike 

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