Business owners should strive to take advantage of every possible deduction in order to minimize their tax liability.
While the IRS provides a short list of don’ts (for example, you cannot deduct anything illegal such as traffic tickets), it doesn’t offer a definitive list of tax deductions available to businesses.
The tax forms for businesses to use to declare income and expenses list all of the broad categories of accepted deductions. These are all the “ordinary and necessary” business expenses that the IRS states you may deduct. However, it’s that last line, the one entitled “Other deductions,” where creative minds begin to work to come up with often overlooked write offs.
Here are a few that may work for your small business:
1. Pet Food. If you own an animal that serves a useful purpose at your place of business and cannot be construed as a family pet that you simply bring to work every day, you may have a valid write off of food, vet bills, training, toys and any other expenses associated with the care of the animal.
The animal must have a job: a cat who keeps down the rat population, a security dog, a herding dog. You get the idea.
2. Body Oil and Sunscreen. A pro body builder was allowed a deduction for body oil used to make his muscles glisten under the lights. However, the IRS disallowed special dietary foods and supplements, which by the way, would not be deductible as medical expenses either. A tennis pro may write off sunscreen products as they fall under the category of protective gear.
Read more from Fox Business