Owning a business in Montana has its benefits. There are so many aspects where possible tax deductions can be claimed in business taxes. With the help of a professional CPA in Billings, MT, the whole process gets more straightforward to understand, and all the possible elements get covered. Make sure that you are getting professional advice before applying for tax deductions.
What Are The Possible Tax Deductions?
- Business Meal Costs.
Business meals are the costs that are incurred while dining with clients or colleagues. When you dine with customers for business purposes, you can file that amount as a business meal cost. In many cases, only 50% of the price is covered, but if all the criteria are met, even 100% of the cost can be covered.
- Work-Related Travel Expenses.
When there are expenses related to airfare, lodging, meals, or transportation while traveling for work, work-related expenses can be shown. These expenses are totally deductible if they are necessary and are not in a very large amount.
- Business Insurance.
Business insurance can be defined as a cost of insurance policy that protects your business from various possible risks. Liability insurance or loss of property insurance is a good example of it. These premiums are always tax deductible because they are a necessary business expense.
- Office Supplies.
When you are running an office full of employees, there are essential stationery items you constantly need. It can be as necessary as a pen, paper, or printer ink. Office supplies are a necessity and can be considered as tax deductibles.
- Phone & Internet Expenses.
All the costs related to phone service, internet connections, and mobile plans used for business purposes are deductible. Internet access is taken around the offices, and all the routers and broadband plans that are bought fall under this category and can be tax deductible.
- Charitable Contributions.
Charitable contributions are not directly considered tax deductible. Still, if specific criteria are met and the contribution is made directly through the company, there is a chance of tax deductions from those contributions. The tax law has set a lot of criteria that need to be met in order to claim the deductions.
- Real Estate Taxes.
Tax deductions can be claimed on all the properties that are owned by the business for business purposes. All the commercial property and land area owned by the company can be deductible as a business expense, and real estate taxes can be avoided.
Make sure to consult a professional right away to understand deeply how your organization can benefit the most from tax deductions.