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3 Common Operational Costs Your Business Can Include in Your Tax Return

If you were to ask your employees about the cash flow in your business then they would likely tell you that the company has money to burn! And can you blame them? After all, employees only see a business operating and their wages being paid. They have no idea about repayments towards financial obligations or the general running of a business.

 

A business owner or manager, however, knows that the reality is very different. However, what many of these owners and managers don’t know is that many of the expenses they are aware of, and often complain about paying, can be included in and deducted against their tax. Below are some of the most common business expenses which you may not have known you could claim.

 

Space

The term space is vague, and this is on purpose. This is because many modern businesses don’t operate out of traditional business spaces. However, the core of the point remains that if your rent a space for the purpose of operating your business, then you can claim this on your business tax return.

 

This can include any storefronts which you operate, warehouse space that you utilize, and even temporary space you may need to hire for events and promotions.

 

Employee Expenses

If you employ staff to operate your business then there is a high chance that you also provide them with health insurance. While there isn’t much that you can do to reduce these expenses each month, you can claim them against your business tax at the end of the year. However, employee expenses don’t stop there. Any uniform items that you purchase from the Groupon Coupons page for Merrell may also be used on your tax return, along with a long list of employee related items.

 

Sit down and look at each of the business costs associated with employing, managing, and maintaining your staff, and consider their place on your business tax return.

 

Services

  • Do your lights turn on when you flip the switch?
  • Does water come from the faucet with you turn the handle?
  • Can you send and receive email and browse the internet?
  • Does the phone ring when a customer calls?

 

office worksIf the answer is yes then you are paying for a utility which you can include on your tax return. If it is a service or a utility which is required for you to operate your business then it is a service which you can look to include on your tax return.

 

Of course, don’t limit your scope to recurring services. If your business property needs repair or maintenance or there are incidental services required for your business to continue operating, be sure to include these in your considerations.

 

While this is in no way an exhaustive list of the items which you can claim on your business tax return, they are three great starting points to help you and your business make the most of the items which commonly attract tax credits and deductibility.