At TheWiseBook, our motto is to simplify the complexity, and we take it seriously – even if we can’t resist cracking a joke or two along the way.
If you’re a small business owner in Texas, understanding common tax deductions for Tax Year 2024 (TY 2024) could be the key to keeping more money in your pocket. Let’s dive into the deductions you need to know.
- The Home Office Deduction: Make Your Workspace Work for You
If your home doubles as your office, congratulations! Not only do you get to work in your PJs, but you may also qualify for a tax deduction.
Whether you’re running a cattle ranch or crafting personalized Nail Art, if you have a designated space for business, you can deduct a portion of your home expenses. That means part of your rent, mortgage interest, utilities, and even your Internet bill might count.
Just remember: the IRS will raise an eyebrow at “shared spaces” like your dining table, unless it’s permanently set up as your workspace. So maybe keep the spaghetti sauce off your invoices, alright?
- Mileage: Turn Those Texas Roads Into Tax Savings
Driving around the Lone Star State isn’t just a way of life – it’s a potential tax deduction. If you’re driving for business purposes, you can deduct either the standard mileage rate or your actual vehicle expenses. For TY 2024, the IRS sets a new mileage rate, so keep track of every trip – from client meetings in Austin to supply runs in San Antonio.
TheWiseBook tip: download a mileage-tracking app to make life easier. The less math, the better.
- Supplies and Equipment: Deduct the Tools of Your Trade
Whether it’s a shiny new laptop or enough paper clips to fill the Alamo, most business-related supplies and equipment are deductible.
Don’t forget big-ticket items that qualify for Section 179, which allows you to deduct the full purchase price of qualifying equipment purchased in the tax year. That’s a fancy way of saying: if you bought it in 2024, you might get to write it off in one go. Yeehaw!
- Meals and Entertainment: Tacos With a Side of Tax Breaks
When it comes to dining out for business purposes, the IRS is surprisingly generous.
You can generally deduct 50% of the cost of meals when you’re wining and dining a client. Just make sure to keep those receipts and jot down the “who” and “why” – well, obviously, the IRS isn’t a fan of “just because.”
- Professional Services: Let the Pros Help You Save
From legal fees, accounting services to tax service (hint, hint), expenses for professional help are often deductible.
Paying a Pro like us to sort out your taxes or hiring a consultant to boost your marketing strategy can pay off in more ways than one. After all, simplifying the complexity is our specialty, and that peace of mind is worth every penny.
- Business Interest Deduction
Taking out a loan to grow your business is a big step – and thankfully, the IRS recognizes that. The interest you pay on business loans is often deductible, reducing the financial burden of borrowing. This includes loans for purchasing equipment, expanding your workspace, or even managing day-to-day operations. Keeping a meticulous record of your loan agreements and interest payments, and don’t forget to include it in your records.
- Some Tax Credits: Little Rewards for Doing the Right Thing
Tax credits are like finding delicious bonus fries in your takeout bag – unexpected but delightful. Here are a few credits you should consider:
- Employer-Provided Childcare Credit: supporting your employees with childcare expenses can earn you this credit. It’s a win-win for everyone!
- Opportunity Zones: invest in specially designated areas, and the IRS might reward you with some impressive tax benefits, because their purpose is “to spur economic growth and job creation in low-income communities while providing tax benefits to investors”.
- Clean Vehicle Credits & Advanced Energy Project Credit: upgrading to an eco-friendly ride for your business or innovating in advanced energy? The IRS wants to help you go green; therefore, this credit can offset your costs while boosting sustainability.
- Fuel Tax Credit: this is a tax credit specifically for businesses that use off-highway fuel (e.g., fuel for farming equipment, construction vehicles, or generators) and have paid excise taxes on that fuel. It is not for regular vehicle fuel used for on-road business purposes such as driving to meet clients or making deliveries.
Don’t Miss the Deadline: Call to Action
Ready to maximize your deductions for TY 2024? Don’t wait until the last minute!
Gather your records, track your expenses, and reach out to a tax professional who speaks fluent deduction. At TheWiseBook, we’re here to help Texas business owners like you take the stress out of tax season, and make sure you’re not leaving money on the table.
One Final Thought: Taxes Make Texas Friendly
Taxes might not be fun, but they don’t have to be overwhelming. With the right guidance, you can navigate the system and come out ahead. So let’s roll up our sleeves, grab a calculator, and tackle this together. Because here in Texas, we believe in big dreams, big savings – and you deserve your share.
Stay tuned for more tax tips, tricks, and a touch of Texan wit. And remember, when it comes to taxes, simplify the complexity with TheWiseBook. We’ve got your back, partner.
