Tax Tips to Maximize Summer Savings for Your Small Business

Deduct Summer Travel Expenses

If you attend out-of-town conferences, client meetings, networking events, or other business-related trips this summer, be diligent about tracking all travel expenses. This includes flights, rental cars, mileage for personal vehicles, lodging, meals, parking, tolls, and any other costs incurred for travel. Keep detailed receipts and records. Properly documenting these expenses allows you to deduct them come tax time, providing substantial savings.

Explore the Child and Dependent Care Tax Credit

If you pay summer childcare costs for a qualifying dependent under age 13, you may be eligible for the Child and Dependent Care Tax Credit. This can apply to expenses like day camp, daycare, babysitting and more while you are working. The credit can be worth 20-35% of allowable care costs up to $3,000 for one child or $6,000 for two or more children. Make sure to keep invoices and payment confirmation from your care provider. The credit can help offset these childcare costs incurred during summer months while allowing you to focus on your business.

Evaluate Home Office Deduction Eligibility

Take time this summer to review IRS home office deduction requirements and determine if you qualify. To claim the deduction, your home office space must be used regularly and exclusively for business purposes. If you meet criteria, you can deduct a portion of home office expenses like rent, utilities, internet, insurance, renovations, furniture, supplies and more. An accountant can help determine the appropriate percentage you can claim based on square footage. Maintain detailed records to substantiate the home office deduction.

Carefully Track Charitable Donations

Many businesses and individuals increase charitable giving during the summer months. Be sure to keep receipts and written documentation for any donations to qualified nonprofits. Eligible donations include cash, goods, property, and out-of-pocket expenses related to volunteer work. These records will be needed to provide evidence of your generosity for tax deduction purposes. Consult an accountant on maximizing your eligible tax deductions for charitable giving.

Consult a Bookkeeping Professional

To maximize summer savings while ensuring full compliance, consult with Pittroe’s experienced bookkeeping team. We can help identify all eligible deductions and credits and ensure proper documentation is in place. Let us handle your books so you can focus on your business and enjoy the sunny season! Contact us today to get started.