Common tax deductions for small businesses.

1. Wray Rives CPA CGMA
See Wray to CYA

2. Business Tax Deductions
● Cost of Goods Sold
o Materials, Components, Supplies related to tangible
goods you sell
● Advertising
o Marketing, Promotional items, gifts
● Auto and Vehicle Expense
o Mileage or Actual Expense
o Must track Mileage

3. Business Tax Deductions
● Commissions
o Money you pay others to bring business to you
● Contract Labor/Outside Services
o Be sure you issue 1099’s
o Don’t call them employees
● Depreciation
o Write off assets you use in the business
o Sec 179 and Bonus Depreciation

4. Business Tax Deductions
● Payroll/Wages
o Be sure you file W2’s and 941 Forms
o Sole proprietors/Partners do not receive wages
● Interest Expense
o Only for business financing
● Rental and Lease Payments
● Insurance
o NOT Health Insurance

5. Business Tax Deductions
● Professional and Legal Services
● Office Expense and Supplies
● Repairs and Maintenance
o For business assets
● Taxes and Licenses
o Sales tax if you include it in revenue, property tax on
business assets,

6. Business Tax Deductions
● Travel and Entertainment
o Per Diem (limited for Sole Proprietors)
o Catered events for customers/employees 100%
Deduction
● Utilities for separate business location

7. Home Office Tax Deductions
● Area used EXCLUSIVELY for business
● Does not have to be a separate room
● Mortgage Interest, Property Taxes, Utilities,
Repairs, Maid Service, Lawn Service, HOA
Dues
● Depreciation-Impacts exclusion when you
sell the home

8. Unique Business Tax Deductions
1. Breast implants for an exotic dancer.
2. Cost of beer given to customers of a
convenience store.
3. Cost of cat food for a junk yard owner.
4. Body oil for a professional body builder.
5. A portion of the money paid to a live-in
girlfriend