Standard Small Business Expense Deductions 2019

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The TCJA, or Tax Cuts and Jobs Act is now in full swing and depending on the size and scale of your business, you may be more than unsure as to how these changes will affect your current tax responsibilities.

It’s never a good idea to second guess how these changes will affect you, so you should always look for reputable sources to help explain things in further detail. While it would be helpful if the IRS could write individually to business owners and help them understand what they are to expect, they are limited in their ability to do this to any great effect. So, currently you can check out the IRS-More in News page in which you can find updates and stay abreast of all the current changes via links to notices and news releases as they happen.

Other fantastic sources for up to date advice and guidance about how tax reform might affect you and your small business, are tax professionals, who by the very nature of their job, keep themselves up to date on tax changes and laws.

To help you until you can seek help from a professional, here is a list of allowable small business deductions taken from an IRS publication. Please note that this list may not be exhaustive since additions may present themselves throughout the year, and so it’s always best to get the most up to date information from a reputable source such as a qualified small business tax professional.

Small Business Standard Expense Deductions:

  • Uncollectible debt
  • Advertising Deductions (not including any form of advertising that could be deemed to influence any type of legislation)
  • Banking fees
  • Business Vehicle Expenses
  • Charitable Donations
  • Convention and Trade Show Attendance
  • Education Expenses for Business Enhancement
  • Business and Business Vehicle Insurance Premiums
  • Intangibles, such as Patents, Registrations, Intellectual Property Protections etc
  • Interest on Business Credit Cards, Business Loans, Borrowed Funds for the Purpose of Investment
  • Repairs, Renovations and Maintenance Expenses
  • Office Machinery, Supplies, Tools, Service Expenses
  • Professional Costs such as Consulting Fees for Business Enhancement, Accounting, Legal Fees etc
  • Home Office Expenses
  • Qualifying Business Income
  • Entertainment and Meals – please seek more guidance for further requirements and exceptions to this category
  • Rent Payments Paid to House your Business
  • Wages and Salaries
  • Business Related Utility Payments, such as Water, Power, Telephone etc
  • Company Travel Expenses
  • Taxes Previously Paid
  • Costs Incurred for Research and Development
  • Non-cash Rewards and Gifts

For more detailed advice and guidance on this, or any other matter concerning taxes for your small business, always seek help from a reputable, qualified and preferably recommended, source. Making errors on your tax return or missing out vital information can easily lead to penalties, but if you seek professional help, you should glide smoothly through the entire tax experience, leaving you free to resume your normal activities with minimal disturbance.