Tax Deduction Ideas

Know what counts as a small business tax deduction.

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The Internal Revenue Service defines a business expense as any cost associated with the act of doing business, according to the Business Expense" page of the IRS website. The IRS allows small businesses to deduct certain expenses from the company income tax return. To maximize the allowable deductions, it is necessary to develop tax deduction ideas.

If you use a portion of your home exclusively to conduct business, then you can write off a portion of your home expenses on your business taxes, according to the article titled "Small Business Expenses and Tax Deductions" on the Business.gov website. Some of the home office expenses that can be deducted are the mortgage, utilities, home repairs and homeowners insurance. You do not need to own your home for it to be a business deduction. If you live in an apartment and have a portion of that apartment set aside for business use, then expenses such as rent and utilities are deductible. Consult an accountant to find out how much of your home expenses can be deducted for your business.

Office supplies used in the course of doing business are tax deductible, according to the article "A Dozen Deductions for Your Small Business" on the Bankrate.com website. Keep all of your office supply purchase receipts, and keep them organized in a file folder for easier categorization. Office supplies that are deductible include copy paper, printer ink, pens, pencils, pads of paper, paper clips, highlighters and staples.

Your employees offer a source of small business tax deductions, according to the "Business Expenses" page on the IRS website. Employee compensation and certain employee retirement plans, such as a 401k, offer tax deductions for the small business as well.

Office furniture offers another chance for small business tax deductions, according to Bankrate.com. The small business owner can choose to write off the entire cost of office furniture purchased in a year, or the cost can be spread out over the span of seven years as depreciation. Depreciation is not done in seven even segments spread out over seven years. The IRS releases a depreciation schedule each year that explains how to depreciate equipment and write it off on your small business taxes.

Arnold Anderson began writing professionally in 1985. His publishing credits include a weekly column in the "Lockport Union Sun and Journal" along with the "Spectrum," the "Niagara Falls Gazette," "Tonawanda News," "Watertown Daily News" and the "Buffalo News." Anderson has a Bachelor of Arts in English from the State University of New York, Buffalo.