Business Taxes / How to Sell Online

92 Small Business Tax Deductions to Use Now (+11 You Should Never Try)

Melissa Hollis / 2 min read
ecommerce sales tax

92 Small Business Tax Deductions to Use Now (+11 You Should Never Try)

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Table of Contents

    So far in this Ecommerce Tax Handbook we’ve covered sales tax, Amazon FBA, and tax law deadlines. Now we’re on to the fun stuff: deductions.

    Taxes are business as usual, but so are a lot of other things. Small business in the U.S. are fortunate to have plenty of possible deductions to save money where they can.

    Note that in order to use any of these deductions, you will need to prove the fees and cost. This means you need to keep receipts – all of them, and in an organized fashion.

    Also, always consult with a tax advisor on when to use these and if you can. We’ve linked to several sites documenting when each deductible may apply to you. Not all of them will –– and some of the rules for being able to use the deduction can get quite granular.

    Always double check with a tax expert to make sure you are neither overpaying or underpaying.

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    92 Small Business Tax Deductions

    1. Accounting fees
    2. Advertising & marketing
    3. Amortization
    4. Bad debts that you cannot collect
    5. Banking fees
    6. Board meetings
    7. Building repairs and maintenance
    8. Business association membership dues
    9. Business travel (here’s what you need to know!)
    10. Cafeteria health-insurance plan (requires plan)
    11. Car expenses
    12. Charitable deductions made for a business purpose
    13. Charity or traveling to perform charitable services
    14. Cleaning/janitorial services
    15. Collection expenses
    16. Commissions to outside parties
    17. Computers and tech supplies
    18. Consulting fees
    19. Continuing education for yourself to maintain licensing and improve skills
    20. Contractors
    21. Conventions and trade shows
    22. Credit card convenience fees
    23. Depreciation
    24. Discounts to customers
    25. Eating out while you’re traveling for business
    26. Education and training for your employees
    27. Employee wages
    28. Employee benefits
    29. Entertainment for customers and clients
    30. Equipment
    31. Equipment repairs
    32. Exhibits for publicity
    33. Family members’ wages
    34. Franchise fees
    35. Freelancers
    36. Freight or shipping costs
    37. Furniture or fixtures
    38. Gifts for customers or employees ($25 deduction limit for each)
    39. Group insurance (if qualifying)
    40. Guard dog
    41. Gym for employees, located onsite
    42. Health insurance
    43. Home office (see our handy article)
    44. Insurance premiums for credit, liability, malpractice, worker’s comp, and other insurance
    45. Interest
    46. Internet hosting and services
    47. Inventory
    48. Investment advice and fees
    49. Legal fees
    50. License fees
    51. Management fees
    52. Materials
    53. Maintenance
    54. Medical expenses (with plan)
    55. Mortgage interest on business property
    56. Moving
    57. Newspapers and magazines
    58. Office supplies and expenses
    59. Outside services
    60. Payroll processing
    61. Payroll taxes for employees, including Social Security, Medicare taxes and unemployment taxes
    62. Parking and tolls
    63. Penalties and fines paid for late performance or nonperformance of contracts
    64. Pension plans
    65. Permits and fees
    66. Postage
    67. Profit sharing
    68. Publicity
    69. Prizes for contests
    70. Real estate-related expenses
    71. Rebates on sales
    72. Rent
    73. Research and development (we literally wrote the guide on this one!)
    74. Retirement plans
    75. Royalties
    76. Safe-deposit box
    77. Safe
    78. Service fees
    79. Software and online services
    80. Startup expenses
    81. Stereo equipment for playing background music at work
    82. Storage rental
    83. Subcontractors
    84. Taxes (amazingly, taxes incurred in running your business are deductible)
    85. Telephone
    86. Theft and loss
    87. Tips. Just because you didn’t get a receipt doesn’t mean you can’t deduct the cost, but you should document it just the same.
    88. Uniforms for your employees
    89. Utilities
    90. Waste removal
    91. Website design
    92. Workers’ compensation insurance

    11 Deductions to Avoid All Together

    1. A small business loan—but you can deduct whatever you purchase with the loan
    2. Business attire that you can wear outside of work (ie, non-uniforms)
    3. Contributing your time to charity
    4. Membership dues, even to a professional organization
    5. Federal income tax payments
    6. Your life and disability insurance premiums if you’re a sole prop., partnership, or S Corporation
    7. Lobbyists
    8. Penalties and fines you pay as the result of breaking the law
    9. Political contributions
    10. Professional accreditation fees
    11. Your own salary if you’re a sole proprietor

    Questions, concerns or any other deductions we missed? Leave them in the comments below.

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    Melissa Hollis

    Melissa Hollis

    Educator at InDinero

    Melissa Hollis is the marketing content manager and educator at inDinero, an accounting and tax software+service for small to medium size businesses. She is a lover of all things entrepreneurial and enjoys waking up every day with the chance to enable the dreams of aspiring business owners through her writing.

    View all posts by Melissa Hollis

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