Tax Deductions that Small Business Owners Tend to Miss

Kawania Wooten Eyeglasses

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.

6. On-Line or Mobile Apps

If you pay for online tools, such as Evernote, Planoly, Dropbox or Zoom, and you use them solely to support the operation of your business, you are allowed to deduct 100% of the subscription costs of these apps on your taxes.

Love and Soul Always, Kawania

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Hey there trailblazer!

I’m Kawania (kuh won nee ah) and I own and lead two successful businesses in the creative industry.

When I started Howerton+Wooten Events in 2007, I found myself “googling” a bunch of business questions that aren’t always discussed in business books. You know what I’m talking about, right?!? Those “start up” challenges that keep you up until the wee hours in the morning.

Believe me, I’ve been there — That’s why I launched this blog. To provide you with a resource you can reference with those “middle of the night” questions as you launch, run and scale your own successful (and sustainable) business. There’s lots of information in this blog, so bookmark it and hit me up if you have any questions. We all need a little guidance every now and then, right? Take care friend. Keep shining!

Love and Soul Always, Kawania

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