Small Business Tax Breaks: Are You Missing Out?

Identifying small business tax breaks can save your company quite a bit of money. The IRS allows small businesses to take several deductions that can lower their tax liability. Here are a few small business tax breaks to consider.

Auto Expenses

If you own a car through your small business, you can get a tax deduction. You can use two different methods for taking the deduction. You can either keep track of all of your actual expenses that have to do with the car and deduct them. Or, you can keep track of your mileage and then deduct an allowance for each mile. 

Business Expenses

The government also allows you to deduct any "ordinary and necessary" business expenses along the way. This means that any supplies you might have to buy, salaries that you pay, equipment purchases and many other things are deductible. Keep receipts for everything and at the end of the year, you can deduct the amounts from your taxable income.

Bad Debt

If you sell goods to someone that does not pay you for them, you can deduct the expense as "bad debt" on your taxes. You can not deduct anything for services that were rendered but you can deduct the cost of goods.