6 Little-Known Small Business Tax Breaks

As a business owner, finding small business tax breaks is critical. You want to find as many ways as possible to save money on your taxes. Here are a few little-known small business tax breaks that are available for you.

1. Books and Magazines

Many people do not realize that the IRS allows you to deduct the money that you spend on books and magazines that have to deal with your particular trade. These things are considered educational materials and will help your company overall. Therefore, you should keep track of the total amount that you spend on these things and keep a receipt if possible. This can be included in office expenses when you file your taxes.

2. ATM and Bank Fees

When doing business, you will inevitably have to pay some type of bank fee along the way. Luckily, the IRS allows you to deduct any bank or ATM fees that he have to pay. Therefore, while these expenses can seem annoying when they are incurred, they can add up to give you a nice tax break at the end of the year.

3. Gifts

If you are a business that regularly gives gifts to clients, you should keep track of this and deduct it on your taxes. However, you want to keep in mind that the IRS only allows you to deduct a maximum of $25 for each person that you give a gift to. Many businesses will get in the habit of trying to deduct the total amount of the gift. Do not try to deduct more than $25 for each person that you give a gift to as the IRS usually looks out for this type of deduction.

4. Bad Debt

Another tax deduction that you could take for your business is writing off bad debt. If you have a client that you determine will never pay their bill, you can write off the debt. However, you can only write this off if you have already declared the income on a previous year's tax return. Therefore, do not try to write off if you have not declared the income already.

5. Interest

As a business owner, there is a good chance that you have utilize a loan to fund part of your business. If this is the case, the interest that you pay on this loan can be deducted on your taxes. If you are in the early stages of the loan, this could amount to a very nice tax break for you.

6. Travel and Entertainment

If you conduct any travel or entertainment for your business, then you should be able to deduct the expenses. However, when doing this, you will want to make sure that you keep track of everything accurately. The expenses have to be legitimate business expenses and cannot mingle in with your personal expenses. Keep a receipt of everything that you want to deduct as it gives you a nice record of the expense.