How A CPA Century City Helps In Small Business Tax Deductions?

The money you put into getting your business out there can be deducted in full—after all, how could your business be expected to succeed without a little promotion. These expenses can add up fast, so make sure you’re accounting for everything.

Common expenses in this category for small business owners include:

Any type of ad you can think of (social media, Google, podcast, ads in print or digital publications, billboards, commercials, subway ads, retrofitting your car with an ad—you name it)

• The costs of building and maintaining a website

• Email marketing costs (like upgrading to paid MailChimp)

• Influencer marketing costs

• Business cards, postcards, flyers, other printed materials promoting your business

• Any swag with your company name or logo on it

Business Use Of Your Home

If you have a space in your home that’s dedicated to specifically to your work—like a room that serves as an office or even a desk in the corner of your bedroom—you can deduct a portion of your home costs as part of your business expenses. Your CPA Century City can help you more on this. 

There are two ways to calculate this. The more complex way is to figure out the percentage of your home that is used for business and then calculate your home costs—like rent or mortgage, utilities, insurance, and repairs—by that percentage. 

Or you could go the easy route and use the simplified deduction, multiplying the square feet of your home used for business by $5 to get your deduction amount.

Charitable Contributions

If you’re a sole proprietor, LLC acting as a sole proprietor, or S-corp., unfortunately, this deduction doesn’t apply to you (though you can still write these off in your personal taxes if you choose to do itemized deductions). However, if you’re a C-corp. and donate money, supplies, or property to a recognized charity, you can deduct it from your expenses. 

There are just a few things to note: donations of time aren’t included, you can’t deduct more than 10% of your income for this expense, and the charity must qualify for the deduction with the IRS. Your CPA Century City can help you know what qualifies for deductions.