As I was paying for my new pair of eyeglasses recently, the salesperson gave me a receipt to use for my taxes. My mouth dropped open as I was thinking, “I can write off my eyeglasses!?! Why didn’t anyone tell me this sooner?” I learned that my eyeglasses can be written off as a medical expense because they are prescription. But, since I wear them all of the time (for work and non-work), I cannot write them off as a business expense. As life would have it, I also purchased a pair of glasses to wear specifically for working at my computer — They are a different story.
So, what’s the moral of my eyeglasses story? Don’t assume you can or cannot deduct any of your expenses until you have a consultation with your CPA. These deductions are vital for your tax savings and they help you to bring down your taxable income. Check out the legitimate deductions below. Many say that these deductions are often overlooked by small business owners. (THEN, double-check what I wrote with your CPA. I’m definitely not an accountant and tax laws change every year.)
1. Interest on Debts
If you have a business loan or you are using a credit card for business expenses, you can write off the interest charges. Now, this only counts if you are legally obligated to pay the loan back. Loans from your parents don’t count.
2. Car/Truck Expenses
If you use your personal vehicle for business trips, meetings and/or errands, you can deduct mileage or other related car/vehicle expenses. But, you’ll need to keep good records, such as a mileage log, detailed receipts and possibly a business calendar.
3. Communication Expenses
If you incur expenses for the business use of your personal internet connections or your personal telephone (landline and cellular), you may deduct the expense.
4. Facebook and Instagram Ads
You’re allowed to deduct the cost to promote your business on social media. You are also allowed to deduct what you paid to the professionals who helped you create the ad, such as the copywriter and the brand photographer.
5. Educational Expenses
You probably already know you can deduct educational expenses for workshops or classes. But, did you know you can write off educational offerings, such as mastermind groups, online courses, books, and magazines? Just remember that the education you intend to deduct needs to be industry-related or related to running a business.
