If your small business lost more money than it earned in 2021, you can no longer count the entire net loss as a deduction.
For the 2021 tax year, you can deduct interest expenses up to an amount equal to 30% of your taxable income. For the 2020 tax year, you could deduct interest expenses up to an amount equal to 50% of your taxable income. If you paid interest on a business loan, there’s a new limit on how much of that interest counts as a deduction. If you used your car for business and tracked your mileage, be aware that the deductible mileage rate for 2021 is 56 cents per mile, down from 57.5 cents for 2020 miles.
Complete list of small-business tax deductionsīusiness meals | Business insurance | Business interest | Advertising and marketing | Business use of car | Education | Depreciation | Legal fees | Moving expenses | Rent | Salaries and benefits | Phone and internet expenses | Travel expenses | Home office | Office supplies/expenses | Startup expenses | Business bad debt | Business casualty losses | Charitable donations | Investment interest | Foreign earned income exclusion | Retirementīefore diving into the complete list of small business tax deductions, note these three changes to the list of expenses you can deduct when filing your 2021 taxes.
What is a small-business tax deduction?.
In this guide to small business tax deductions, we’ll tell you which deductions are available, note important changes from last year, and identify potential ways to save money on this year’s tax bill. Taking time away from the day-to-day management of your business to investigate every possible tax tip isn’t realistic. Which of your expenses-including rent, inventory, payroll, or utilities-from the past year qualify as tax-deductible? Have new deductions been added? Have tax rule changes made other small business deductions ineligible? When you’re a small business owner, tax time can feel overwhelming.
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