Who likes paying taxes? Nobody. They are a huge expense and are especially frustrating when you end up owing more than you thought you would.
Deductions on the other hand, are great! They lower your tax burden and put more money in your pocket.
There are generally two tax codes in the US, one written for employees and one for entrepreneurs and business owners.
As an employee you are able to write off mortgage interest, property taxes, and charitable donations. This is great! When it’s tax time, you have the benefit of deducting some items from the year.
As an entrepreneur or business owner you are able to write off those same 3 deductions, among many others. Some of the best deductions include:
Part of your rent if you have a home office
Home office business expenses
Meals and travel
Business supplies and equipment
Vehicle use for business
Be sure to loop your accountant in with all expenses you have incurred throughout the year to see what you are eligible to deduct. This is a key ingredient in your recipe to make more money, build wealth, and pay less tax.