If you are a business owner, taxes can be stressful. Between calculating expenses, income, and investments you may forget to include certain things on your tax returns. Let’s talk about three lesser-known items you should be including on your taxes.
Three lesser-known items to include in taxes
- Gas mileage. First, if you are not including gas mileage, you should be. Especially for a business owner, gas mileage adds up. However, you can’t include all mileage. When it comes to calculating the mileage you can be reimbursed for, you are calculating all business mileage except for your commute to work. For example, you cannot include the drive from your home to the office, but you can include the drive from the office to a client’s home, the store for supplies, or a restaurant for a business meeting.
- Cell phone and Internet bills. Next, you can also add the expenses of your cell phone and the Internet to your taxes. Especially if you work from home, these two expenses should make it into your return. To write off a portion of these bills, you must calculate how often you use your phone or the Internet for work as opposed to recreational usage.
- Educational expenses. Finally, you should be including educational expenses on your taxes as well. Continuing education is imperative for a business owner to hone existing skills and learn new skills. Remember, to claim an educational expense, it must relate to your business. Educational expenses can include conferences, online classes, books and other reference materials, and even mastermind groups.
Business taxes can seem daunting, but they don’t have to be. Whether you decide to tackle them yourself or hire a professional, these three items should make it onto your expenses. If your business finances are looking tight after the money’s been balanced, it may be necessary to look into additional funding. The team of financial experts at Aspen Commercial Lending can talk you through all of your business financing options.