As a small business owner, you can deduct business expenses from your income on your tax return to lower your tax burden. There is a long list of business deductions including inventory and payroll expenses, interest on business loans, and the cost of office supplies or equipment. If you use your vehicle or part of your home for your business, you can also claim a tax deduction for those expenses. If your business hires an apprentice, you may qualify for an investment tax credit, and there also are numerous industry-specific deductions.
To make the most of your deductions, track your expenses through the year so you don’t forget anything. Then, use quality tax preparation software that guides you through the process of claiming business deductions by asking questions.