Tax-Saving Tips for 2018
Women’s Venture Fund
Savvy entrepreneurs find tax-saving tips all year long. Work with your accountant or tax preparer to make sure you are aware of deductions you are entitled to when filing 2018 taxes. Did you know…
- Bookkeeping services, whether online or performed offline, as well as any accounting and bookkeeping software you subscribe to are deductible. Business tax prep and the services of a CPA or tax attorney to represent you before the IRS or a tax court are deductible.
- The cost of daycare for your children or a physicall or mentally challenged adult in your care while you run your business is fully deductible.
- Advertising and marketing costs, ranging from printing of business cards and fliers to TV and print and digital ads are 100% deductible. Marketing agency fees, customer appreciation events and even your sponsorship of local sports teams are permissable under the tax law. However, any anonymous donations do not apply since you are not promoting your brand. (Obviously, the more revenue you achieve from your advertising, the more income tax you will owe due to increased profit. Work the numbers to find your sweet spot.)
- Learning new skills directly related to running your business not only ensures your abilities as a knowledgeable business owner but pays off at tax time. The key word here is ‘directly’ as undertaking an education to enter a new career is not deductible.
- The cost of homeowner’s or renter’s insurance as covered under home office deductions.
- Business meals and beverages are only 50% deductible: Keep your receipts, noting the purpose of the meeting, date and location.
- There are possible tax breaks when hiring family members. For example, if your spouse is employed by your business, you don’t have to withhold federal or state unemployment taxes; but you must withhold FICA and Medicare.
Check in with your accountant now to discuss what you might do before the end of 2018 to save on your tax bill.
Did you know you can write off the entire price of qualifying equipment bought this year?