For most small business owners in Michigan, the majority of day to day business hours are spent focusing on getting their business going and keeping it moving forward. For newer small businesses, marketing, merchandising, and running the front office are where all time and energy will be focused for the first few years. Regardless of what type of business you are operating, establishing and maintaining a solid accounting system is vital before tax matters fall by the wayside. It’s never too soon for your Troy, MI small business to learn about the tax benefits that your company can take advantage of for savings.
Small Business Home Office Deductions
If you operate your Detroit small business from home, then you are able to take advantage of a tax deduction. To quality, there must be space in your home that is dedicated solely for business use. If your home office and computer also serves as the family’s study and game room, then according to the IRS, this would not qualify. Keep in mind that the deduction allows for your office space to be a part of a room rather than an entire room. In this case, the exact amount of space used as office space would qualify. See your tax expert at E&Y Agency for the specific guidelines governing home office deductions.
Deducting Office Equipment And Supplies
Items used for your business such as computers and software, subscriptions, copiers, scanners, and office furniture purchases are all tax-deductible (or some items are depreciable). Hang onto your receipts, because certain office supplies that you buy for your use at your business are deductible. Phones and mobile phone charges are also considered a business expense to the extent that they are used for business purposes rather than personal use.
Business Trips And Meals
Expenses you incur while traveling for business purposes can be written off as a business expense. If you drive, be sure to document the mileage, tolls, and parking fees. For the 2016 tax year, the reimbursement rate for mileage will be 54 cents per mile, which is a pretty significant amount for those who spend a good amount of time travelling for business. Flight and train costs are also 100% deductible, as are all tips. While on the road for business, you can deduct 50% of your meals during your trips, so keep those receipts.
2016 Tax Laws For Small Businesses
It can be tough for small business owners to keep up to date with the latest IRS rules that affect their business. That’s why Troy MI small business owners rely on the tax experts at E&Y Agency to navigate the ever-changing tax rules. At E&Y Agency, we specialize in handling tax returns for small businesses in Michigan. Call us today at (248) 909-1331 to learn how our tax experts can help your small business with any tax matters.