Being a business corporation comes with many advantages, including several tax deductions that the IRS allows for expenses that are needed to keep our operations going. There are different types of expenses that can be deductible, including current expenses and capital expenses. Current expenses are the expenses needed to keep our corporation fully operational, while capital expenses refer to investments made in order to generate income for our business. So, if your business is a corporation, or you were thinking about incorporating your business, these are some of the tax deductions you can take advantage of.
For every business and corporation that is looking for tax-deductible expenses, operating expenses are customary. These expenses include all those on which businesses rely on to make sure their day to day operations are not interrupted. Some of the most common operating expenses corporations must cover include payroll, office supplies, rent, accounting services, insurance policies, legal fees, and utility costs.
Corporations are also allowed to deduct all the employee-related expenses they need to cover, which turns out to be a great benefit for both employers and staff members. This is because such deductions can allow businesses to give more perks and benefits to their employees. Some of the most common employee expenses include health benefits, salaries, performance bonuses, sick leave, and vacations. Also, any work-related travel expenses for employees like travel or use of their personal vehicle for business matters are deductible as well.
When we are in charge of a business, we must make sure we take care of everything and everyone and having an insurance policy that offers the protection we need is essential. However, covering insurance premiums can become one of the biggest expenses for corporations. Luckily, insurance expenses can be tax deductible, which works as a great incentive for businesses to purchase comprehensible and extensive coverage. Insurance premiums for theft and fire damage, liability and worker’s compensation, even malpractice or errors and omissions insurance premiums can qualify for tax deductions.
Every corporation is different, but many need to cover travel expenses whenever they are visiting a client, looking to expand their business, or attending conferences and trade shows. Regardless of our travels being local or long distance, the expenses generated also qualify for corporate tax deductions. Whether we are traveling by air, by train, or land, we can deduct these expenses. Also, meals and gratitude expenses qualify for these deductions, too.
If you have any questions regarding tax-deductible corporate expenses, don’t hesitate and get in touch with us. We’ll be more than happy to give you the guidance and assistance that you need for your business.