Cleveland, OH-based Electronic Merchant Systems (EMS) recently published a blog post where they discuss some of the best tax deductions for small businesses. Tax season can be a very difficult time for anyone, especially small business owners. Many aren’t fully aware of the best way to approach taxes, and that’s what the Electronic Merchant Systems blog hopes to shed some light on.
There are a number of tax deductions that small businesses can take advantage of, and the EMS article talks about some of the best ways these deductions can be used to reduce the amount of taxable income that must be paid. The Electronic Merchant Systems blog post is available here: https://www.emscorporate.com/news/what-are-the-best-tax-deductions-for-a-small-business-owner.
The most common type of deductible falls under the “ordinary and necessary” category. The EMS article says, “If the IRS offered a master list of small business tax deductions for each type of small business, this blog post would not be necessary. But it’s not, so getting your tax deductions is a bit trickier. However, they do provide small business owners with a general rule of what they can deduct from your taxes. So if you need specific items or services to survive as a business, you can deduct those expenses on your tax return. Artists need paints and brushes; writers need computers, pencils and papers, etc. These expenses are all tax deductible. Some expenses are specific to the type of business you run, but some standard tax deductions are available to most small business owners.
The cost of advertising, promotion and marketing is 100% deductible, which means that paying for a logo, printing promotional material, buying advertising space or creating a new website, etc., all count for tax deductions. Mortgage interest is another tax deduction small business owners can claim. If they own a home with a mortgage, they can deduct interest paid on financial assistance used to buy, build, or maintain the home.
Automobile expenses can also be claimed as a tax deduction, provided the business owner uses his car for his business. They can deduct car maintenance costs in two ways. The actual expense method (where the owner keeps track of business expense deductions) and the standard mileage rate method, which deducts the standard mileage rate for each mile driven in addition to business-related tools and Parking Fee.
Business owners who work from home can deduct office expenses for business use of their home. “These deductions will likely include mortgage interest, insurance, utilities, repairs, and depreciation,” the blog post says. “The square footage also plays a major role. You can also deduct $5 for each square foot of your home office, up to 300 square feet. But the IRS only allows you to claim this deduction if your home office is regularly used exclusively for business purposes. If you use your home office as a child’s bedroom or guest bedroom, you cannot claim this deduction.
The blog post also talks about business meals, health insurance premiums, charitable contributions, education expenses, internet and phone bills, legal and professional fees, and more. Each of these elements, if managed properly, can greatly improve the tax season experience for small business owners.
EMS is a payment processing service provider that offers businesses the ability to handle all kinds of transactions quickly and conveniently. With EMS, businesses can save money on tariffs and credit card fees, receive up-to-date and timely payment processing equipment, enjoy excellent 24/7 customer service, add email billing, streamline acceptance of all major credit or debit cards and much more.
EMS has been a leading provider of payment processing and merchant services since 1988, and they have been helping business owners realize their full potential and increase their financial well-being over the decades. From its headquarters in Cleveland, Ohio, the company serves thousands of retail, internet, and startup businesses across the country.
To learn more about the best small business tax cuts and payment processing, customers can visit the Electronic Merchant Systems website. Interested parties can also contact their customer service team to address any other concerns.
For more information about Electronic Merchant Systems, contact the company here:
Electronic merchant systems
250 W Huron Road #400
Cleveland, Ohio 44113