What Does IRS Publication 535 Mean For Your Business?
As tax season quickly approaches, business owners must stay on top of their tax obligations to remain compliant. At the same time, responsible business owners should recognize and understand all of the tax deductions that are available to them, ensuring they can maximize their returns and minimize the amount they owe.
When it comes to your business expenses for tax deductions, you don’t want to ignore the IRS Publication 535. If you’re not yet familiar with IRS Publication 535, read on!
What is IRS Publication 535?
IRS Publication 535 is the go-to guide for business deductions. Savvy business owners will be sure to address IRS Publication 535 to the fullest extent to make sure they are utilizing all the business expense deductions possible.
The IRS Publication 535 is available on the IRS website, regularly updated with any changes made for the new year.
How Should I Use IRS Publication 535?
When looking at your taxes as a business owner, the first step is to separate your personal expenses from your business expenses. This should be done consistently throughout the year, ideally using separate accounts, credit cards, etc.
At this point, you can go through all the expenses you’ve incurred for your business over the year and check to see if they are listed on IRS Publication 535 as allowable deductions that could then bring down your tax burden. As a rule of thumb, business expenses included on IRS Publication 535 include the “ordinary” and “necessary,” meaning they are common to your industry, and they are essential to you completing the work needed for your business.
Business expenses as per IRS Publication 535 include, but are not limited to:
- Office rent
- Employee salaries
- Equipment and supplies
- Utility and telephone costs
- Legal and accounting services
- Business subscriptions
- Professional dues to relevant organizations.