Small business owners in Illinois should be aware of tax deductions available to them. As tax season approaches, many business owners will be gathering documentation in preparation for filing their annual tax returns. Using every available deduction can help one ensure that they are getting the most from their investment and not missing out on funds that could be used to purchase necessary items to keep their business functioning.
Be aware of these deductions
Small business owners can take advantage of many tax-related benefits, especially if they keep proper records. Business essentials like utility, rent, and insurance are usually fully deductible. For those who work fully or partially from home, it’s possible to deduct a percentage of these expenses, depending on one’s setup and hours worked from home. Vehicles that are used for business purposes allow one to deduct mileage and other car-related expenses.
Physical equipment and necessities like office furniture, computer equipment, and other items needed to complete day-to-day functions can also be deducted. Money spent on advertising and marketing is almost always fully deductible, as is anything spent on business-related travel. In some cases, employee salaries, benefit programs, and gifts can also be deducted.
Know the laws
Small business owners can greatly benefit from taking advantage of all applicable deductions, but the laws surrounding these deductions may not be clear. Many Illinois business owners choose to work with an attorney who understands the state’s tax laws. An attorney can answer questions and guide how one can best take advantage of the tax benefits of owning a small business.