What Tax Deductions are Available to my Small Business? - CFO Source
Maximizing Profits, Minimizing Taxes,
And Finding Capital For Our Clients

What Tax Deductions are Available to my Small Business?

Tax season is coming up, which means it’s time to get your business’s financial accounting for 2019 in order. Deductions are important for small businesses to make, as they can lower tax dues and improve your return. But what deductions are available for you to make this tax season? Take a look at our list to find out:

tax deductions for small business

Small Business Deductions

Your business is likely not eligible to file for every tax deduction available, but being aware of what you can deduct is key to saving money in 2020. Some of the deductions available to small businesses include:

1. Home Office: Is your business run from home? Do you perform any amount of work for your small business in your own house? You may be able to make home office deductions, which can even include a percentage of your mortgage payment (based on the square footage of the office space in your home).

2. Professional Services: Most small businesses don’t have in-house accountants or business consultants, so they hire professionals to render these services. Fees and related expenses for these services can be deducted come tax time.

3. Office Supplies: Conventional office expenses and business supplies can be deducted as well. Just remember to file and save all receipts from these purchases.

4. Vehicle Expenses: If your small business requires company vehicles to carry out your services or deliver your products, you may be eligible to deduct related expenses, including maintenance, repairs, gas, parking fees, tolls, and more.

5. Furniture & Equipment: When it comes to office furniture and equipment that you need to run your business, you can either deduct the entire cost for the previous year, or you may depreciate these purchases over a 7-year period.

6. Employee Benefits: An advantage of offering benefits to the employees of your small business is that you can deduct them when tax season arrives. Eligible benefits include health plans, pensions, education reimbursement, life insurance, and more.

7. Client/Employee Entertainment: As long as you entertain clients or employees in a business setting, for business purposes, and actually discuss business with them, you can deduct outings like lunch meetings or other outings.

8. Work Opportunity Tax Credit: Although not a deduction, this tax credit is available to certain businesses that have hired long-term unemployed workers or military veterans in 2019.

Some additional deductions that are popular with small businesses are:

  • Bonus Depreciation
  • Salaries & Wages
  • Freelance or Independent Contractor Labor
  • Utilities
  • Computer Software
  • Office Leasing Costs
  • Commissions
  • Travel Expenses
  • Equipment Rental
  • Loan Interest
  • Disaster & Theft Losses
  • Charitable Deductions
  • Moving Expenses
  • Trademarks and Other Intellectual Property

Looking for Small Business Tax Help in Baltimore, MD?

Tax deductions are just one aspect of financial business accounting that need to be addressed this season. For the help your business needs in tax preparation and other areas of finances or accounting, there’s The CFO Source. We are a Maryland accounting, business consulting, and tax services firm that is dedicated to providing businesses with the 1-on-1 financial assistance they need to succeed.

Let handling your taxes this season be a breeze for your small business and contact us today to get started.

What Our Clients Say...

"We struggled for several years with high turnover in our bookkeeper position, which resulted in missed billings and duplicate payments. Craig Kershaw was able to locate a high caliber person who quickly took over the accounting and is now helping to expand the business into new markets. I no longer worry about whether my accounting is being done properly."

-Bryant Brambeck, Owner, Liberty Emblem Company

Does Your Company Need
CFO or Accounting Support?
  • This field is for validation purposes and should be left unchanged.

arrow Click to View the Areas That We Serve arrow

Regions Served

  • Frederick County: Frederick (21701, 20702, 21703, 21709), New Market (21774) , Mount Airy (21771), Urbana (21704), Ijamsville (21754), Walkersville (21793), Libertytown (21762), Damascus (20872), and more.

    Howard County: Clarksville (21029), Columbia (21044), Cooksville (21723), Dorsey (21075), Elkridge (21075), Ellicott City (21043), Fulton (20759), Glenelg (21737), Glenwood (21738), Granite (21163), Hanover (21076), Highland (20777), Jessup (20794), Lisbon (21765), Marriottsville (21104), North Laurel (20723), West Friendship (21794), Woodbine (21797), Woodstock (21163), and more.

    Montgomery County: Olney (20832), Damascus (20872), Laytonsville (20882), Silver Spring (20910), Clarksburg (20871), Gaithersburg (20878), Germantown (20876), Bethesda (20816), Chevy Chase (20815), and more.

    Baltimore County: Arbutus (21227), Catonsville (21228, 21250), Cockeysville (21030, 21031, 21065), Dundalk (21222), Edgemere (21219), Essex (21221), Garrison (21055), Lansdowne (21227), Lochearn (21207), Lutherville (21093), Middle River (21220), Milford Mill (21244), Overlea (21236), Owings Mills (21117), Parkville (21234), Park Heights (21215), Pikesville (21208), Randallstown (21133), Reisterstown (21136), Rosedale (21237), Timonium (21093), Towson (21204), White Marsh (21162), Woodlawn (21207), and more.

    Carroll County: Eldersburg (21784), Finksburg (21048), Hampstead (21074), Manchester (21102), Marriottsville (21104), Taneytown (21787), Union Bridge (21791), Westminster (21157, 21158), Mount Airy (21771), New Windsor (21776), Sykesville (21784), Woodbine (21797), Taneytown (21787), and more.

  • Washington, DC and Northern Virginia

cbs radio



facebook twitter linked in

Contact CFO Source

5515 Hudson Drive
Sykesville, MD 21784
phone icon 443-487-7733 | Fax: (206)415-2361

certified advisor