What are Tax Deductions for Small Businesses in 2023?

When it comes to small business tax deductions, the more important thing you need to know is that there is a surprising amount of them. Many people do not realize that they could be deducting plenty of these business-related expenses each year, helping them to lower their taxable income and save money, which is especially vital for start-ups and SMBs that have less financial leverage.

Here are 3 of the most common tax deductions for smaller businesses and start-up companies.

If you have to use your personal vehicle for any business-related travel, you can actually claim the business part of your vehicle usage as a deduction. This will typically involve deducting your actual business travel expenses (such as gas costs for a business trip to another state) or by using the IRS set rate for business mileage.

Most of the expenses of business travel can be included in tax deductions; this includes not just practical items such as the cost of plane tickets or hotels, but around 50% of the cost of meals and business entertainment, such as taking out a client to dinner and a show.

You can claim a significant portion of your start-up costs as a tax deduction; as of 2023, you can claim up to $5,000 of business start-up expenses and up to $5,000 of organizational costs

As a small business or start-up owner, it is in your best interests to file for as many relevant tax deductions as possible to reduce your taxable income. Contacting a tax professional will help you save the most money and file for the right deductions.

Schedule a free consultation today with our experienced certified public accountant to help you improve your tax and financial situation.