5 Tax Breaks Every Business Owner Should Know About | Manta

By Lori Murray, Manta Contributor - August 30, 2016

As a small business owner, you’re probably well aware of the challenges associated with keeping your business up and running—and turning a profit. Each day offers greater potential, but you must first learn to navigate the potential pitfalls.

Of course, it helps to take advantage of any tax breaks that come your way. According to the experts at LoanMe, here are five you don’t want to overlook.

1. Interest deductions on small business loans. If you occasionally have to borrow money to operate your business, you’re not alone. Fortunately, the interest on business loans may be deductible. Keep in mind, however, that these deductions don’t apply if you borrow from friends or relatives. And since every situation is different, it’s always best to check with your tax attorney.
2. Business mileage. This is hardly big news, especially if you’ve been in business for a while. But you may not know that the 2016 mileage credit is 54 cents per mile. To qualify, your business must operate fewer than five cars, and you can’t claim Section 179 deductions on your vehicles.
3. Cell phone and depreciation. Like many business owners, you probably rely heavily on your cell phone when managing the daily operations of your business. As of 2010, you can deduct the cost of your cell phone as well as the cost of phone depreciation.
4. Business startup costs. You can easily spend a chunk of change just getting your business off the ground. It’s a good thing the federal government recognizes that. Although the deductions for startup costs are not as extensive as they once were, you can now spend up to $50,000 to deduct up to $5,000 in expenses in your first year of business.
5. SHOP tax breaks. The Small Business Health Options Program (SHOP) makes it possible for small business owners to get a tax break of up to 50% of the costs of the health insurance they offer their employees. And that’s not all. Other premium costs can also be deducted, even if they’re not covered by SHOP’s tax credit.

This article is sponsored by LoanMe, delivering personal and small business loans for the public. LoanMe, Inc. CA DBO License #603K061. This article is for informational purposes only and is not for the purpose of providing tax advice. You should consult with a tax professional regarding what deductions, if any, may be available to you and/or your business.

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com or my personal website at www.BuySellFLbiz.com.