Ryan VaughnCOO of Incite Tax & Accounting. Ask me anything about your taxes.

Commonly Missed Tax Deductions | Short Video

27 Mar 2023 · 2 min

Watch on YouTube

1:57

In this short video, the speaker outlines how small‑business owners can identify and claim tax deductions that are often overlooked. He explains the tax‑code test—expenses must be ordinary, necessary, helpful, and appropriate—and stresses that any cost directly related to the business should be paid from a business account or credit card. He then enumerates common missed deductions, including vehicle mileage, equipment, phone (including personal cell use for business), postage, meals, health‑insurance premiums for owners, continuing education, professional licensing, legal and professional fees, interest, dues and subscriptions, office supplies, home internet, and travel. The speaker concludes with a motivational reminder that lowering taxable income is a choice, encouraging owners to have the courage and wisdom to take advantage of these deductions.

Chapters

Commonly missed tax deductions. Let me share with you a few of what those are, but first let me just say in general, a deduction that you can claim on your tax return is going to be something that is related to your business, that helps your business maintain or improve. The tax code specifically uses 4 words. It says if it's ordinary, Necessary, helpful, and appropriate. Now those 4 terms are pretty vague, and that's why I just say, look, if you're spending a dollar, can you relate it to your business? Then it's a business expense, and you should pay for that expense out of your business account or on a business credit card. Here's a couple ideas of things that you wanna make sure you don't miss. How do you write off your vehicle mileage? This is often overlooked. There's equipment, phone, if you have a separate business line, that's obvious, but your personal cell phone, you conducting business on that? Very likely. Postage, buying stamps, mailing things, eating out. Insurance. As the owner, sometimes we overlook the fact that our health insurance is a tax deduction. Continue education. Any expense that you have that helps you maintain or improve your skill set, is a write-off. Any money you're spending in order to maintain your current status and level as a professional or whatever certification you have, that's also a write-off. Legal and professional fees, interest expense, dues and subscriptions. Now office supplies, internet, that includes home internet, and then travel. Remember that, take advantage of this, lower your taxable income. Profit is a choice. Have the courage and wisdom to choose it.