What is Deductible?

21% of small business owners self proclaim that they do not take all of the tax deductions they are entitled to. That’s 1 out of 5!

Here’s some quick math for you: if you spend $10 on business lunches a day in a given working year, that amounts to $1,300 in deductible expenses in a normal year (2021 & 2022 excluded). What about all those miles on the road from sales call to sales call? In 2022, at 62.5 cents per mile, that can add up quickly if you don’t keep an eye on it. That’s the easy stuff to catch though. What about marketing expenses such as season tickets, but you also have a banner up at the stadium? Entertainment is a no-go for deductions, but that banner is shown to thousands of people a game. How do we calculate that? The bottom line is this: running a business is hard enough as it is, let alone trying to navigate instances such as these. If you’re running things on your own without the right team behind you, it’s easy to leave deductions on the table.

The IRS states a deductible expense is anything both “ordinary" and "necessary”. Ordinary and necessary obviously varies from business to business as well as circumstances. Don’t navigate this alone if you don’t have to. We can help determine what makes sense for you so you can optimize your tax deductions and get the most out of them.