2016 Small Business Tax Deduction Checklist

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Running a small business can be overwhelming at times. You might be worried about your small business’s taxes for this year and need a few more deductions on your list. Because we care about the success of your small business, we wanted to provide you with a few items that some people don’t think about when filing taxes. Here is PayTech’s 2016 small business tax deductions checklist.

Home Office


If your small business is run from home, you can calculate how much of the home-related expenses are tax deductible. Measure your work space and divide that by the total square footage of your home. The resulting percentage is the fraction of mortgage, rent, housekeeping, insurance, electricity, etc. that you can claim. Be sure that you are using your home office for business. You can’t simply claim an entire room because that is where you put your laptop. That kind of thing can get you in serious trouble.


Your utilities which include water, trash, power, and telephone bills at your office, are all fully deductible as business expenses. If your phone line has a mixture of personal and business calls, highlight your business calls and deduct only those from the bill.

Auto Maintenance and Mileage

Driving to see your clients can add up in your gas bill. That’s why auto maintenance and mileage are tax deductible. There are a couple of ways to calculate vehicle deductions. You can apply the standard mileage rate or actual expenses. Use whichever method that results in a larger deduction.

Advertising and Marketing

Ordinary advertising such as business cards and yellow page ads are deductible as long as they directly relate to your business. You can also deduct promotion costs for publicity such as sponsoring a local sports team.


If you bring along a client or prospective client, your meal is then 50% deductible. Remember that eating out with your coworkers on a day-to-day basis is NOT deductible. You can also take current or prospective clients out for drinks or a show and the cost will be 50% deductible, but it does have to be within a business setting or take place before or after a business meeting.

Charitable Contributions

Charitable giving is one thing you can add to your list of deductions as well. As long as you give $250 or more and have a letter from the organization that verifies your donation, you should be able to deduct that donation. If you need to figure out how much you can deduct with non-monetary donations, check out the IRS website!

Let PayTech Handle It

Each of these deductions will help you get more out of your business. If you are looking for other deductions, call PayTech and we will have a list of things that will help you out! Ultimately we believe that PayTech can handle all of your tax needs. Contact us today at (602) 900-8807 and speak with one of our professional and courteous associates!


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