When filing tax returns, sometimes small business owners can miss tax deductions that they are eligible to claim. This is particularly common for people who run home-based businesses. By not claiming these tax deductions, you may be paying more taxes than you owe.
One type of expenses that home business owners miss is business-use-of-home expenses. For example, if you run a graphic design business from your home, you can deduct part of your home’s maintenance costs — including electricity, heat, home insurance, and mortgage — as your business expenses.
Another commonly missed tax deduction is interest expenses. For example, when you apply for a business loan, you may have to pay an application fee for it. This fee is deductible as an interest expense over a five-year period. Additionally, people who use their personal vehicles for business can deduct certain parking fees as expenses.