Electronic Merchant Systems Publishes Guide To Small Business Tax Deductions
April 01, 2022 at 16:24
Cleveland, Ohio -
Cleveland, OH based Electronic Merchant Systems (EMS) recently published a blog post in which they discuss some of the best tax deductions for small businesses. Tax season can be a very difficult time for anyone, especially small business owners. Many are not fully aware of how best to approach taxes, and this is what Electronic Merchant Systems’ blog post hopes to shed light on.
There are a number of tax deductions that small businesses can take advantage of, and the EMS article talks about some of the best ways such deductions can be utilized to lower the amount of taxable income that has to be paid. Electronic Merchant Systems’ blog post can be found here: https://www.emscorporate.com/news/what-are-the-best-tax-deductions-for-a-small-business-owner.
The most common type of deductibles fall under the ‘ordinary and necessary’ category. EMS’ article says, “If the IRS came with a master list of small-business tax deductions for every type of small business, this blog post wouldn't be necessary. But they don't, so getting your tax deductions is a little more complicated. However, they do provide small business owners with a general rule of thumb for what they can write off your taxes. So if you need specific items or services to survive as a business, you can write off those expenses on your tax return. Artists need paints and brushes; writers need computers, pencils and papers, and so on. Those expenses are all tax-deductible. Certain expenses are specific to what kind of business you run, but some standard tax deductions are available for most small-business owners.”
The cost of advertising, promotion and marketing is 100% deductible, meaning that paying for a logo design, printing promotional materials, purchasing ad space or creating a new website and so on all count towards tax deductibles. Another tax deduction that small business owners can claim is mortgage interest. If they own a home with a mortgage, they are able to deduct the interest paid on the financial assistance used to purchase, build or maintain the home.
Auto expenses can also be claimed as a tax deduction, provided the business owner uses their car for their business. They can deduct the cost of maintaining the car in one of two ways. The actual expense method (where the owner keeps track of deducts their business-related expenses) and the standard mileage rate method, which deducts the standard mileage rate for each mile driven in addition to business related tools and parking fees.
Business owners who work from home can deduct office expenses for the business use of their home. “These deductions will likely include mortgage interest, insurance, utilities, repairs and depreciation,” the blog post says. “Square footage also plays a major role. You can also deduct $5 for every square foot of your home office, up to 300 square feet. But the IRS only allows you to claim this deduction if your home office is regularly used exclusively for business purposes. If you use your home office as a kid's room or a guest room, you can't claim this deduction.”
The blog post also talks about business meals, health insurance premiums, charitable contributions, education expenses, internet and phone bills, legal and professional fees and more. Each of these, if handled correctly, can greatly improve the tax season experience for small business owners.
EMS is a payment processing service provider that provides businesses with the ability to handle all sorts of transactions both quickly and conveniently. With EMS, businesses can save money on credit card rates and fees, receive updated and quick payment processing equipment, receive excellent customer service 24/7, add email invoicing, streamline the acceptance of all major credit or debit cards and much more.
EMS has been a leading provider of payment processing and merchant services since 1988, and they have been helping business owners realize their full potential and greater levels of financial well-being over the decades. From their headquarters in Cleveland, Ohio, the company serves thousands of retail, internet and startup businesses across the nation.
For more on the best small business tax reductions and payment processing, clients may visit Electronic Merchant Systems’ website. Interested parties may contact their customer service team to address any further concerns as well.
For more information about Electronic Merchant Systems, contact the company here:
Electronic Merchant Systems
250 W Huron Rd #400
Cleveland, OH 44113