Are You a Consultant?

If you have recently started a consulting business, you should know that there are lots of different deductions available, deductions which can save you money and help to offset some of the costs of associating your business.   

Capital Investments

Did you know, for example, that you can claim the cost of capital investments on your taxes? Capital investments include anything you bought to get your business off the ground, such as office furniture, computers, and more.

For capital investments, you can claim your expenses over a few years, or you can claim them all (up to $510,000) in one tax year.

A tax or financial adviser can help you to determine the best option for you and your needs and goals.

Operating Expenses

Typically, you can also deduct any operating expenses that you may encounter. As long as the expenses are related to things you need to effectively run your business, they can be claimed immediately.

Operating expenses that can be deducted include:

·        Rent on an office building, store, or other work-related space

·        Software subscriptions

·        Electric bills

·        Website-related costs

·        Internet service costs

·        Printing costs

·        Office supplies

·        Heating and cooling bills

·        Water bills

If there is something you wish to deduct as an operating expense but you’re unsure if it qualifies, a tax professional should be able to advise you on whether it does or not.

Advertising Expenses

In many cases, you can also deduct any costs related to marketing and advertising your business and/or to serving your clients.

Some examples of qualifying expenses include:

·        Web hosting costs

·        Web design costs

·        SEO marketing costs

·        Gifts/marketing materials for clients

·        Merchant fees related to marketing your business

·        Business travel costs

·        Costs related to feeding, hosting, and/or entertaining clients and potential clients

As you can see, there are lots of different ways in which you can save money and enjoy business tax deductions.

However, these are just a few of many possible deductions. Make sure you’ve got a good tax professional on your side who can help you find and qualify for all of the deductions for which you are eligible.