When tax season approaches, some individuals stress out more than others. Those who own and operate their own business may fear the thought of owing the government, having to already live and work with a tight budget. For those in the foodservice industry, take heart. Here are several common deductions to pursue that can help put you in better financial standing.
If you have purchased equipment, you may be able to depreciate the cost as a deduction over several years or take an initial, larger deduction only applied the filing tax year.
Compensation and Taxes.
Most employers recognize the ability to deduct employee wages, but bonuses, incentive costs, and even benefits can be tax-deductible. Keep your records in case of an audit.
If your company allows employees to eat while on their break, those can be tax deducted. It can either be included in the cost of the food or you can have it recorded separately.
According to the team at https://www.danielsinsuranceinc.com/, food costs can be used as an expense. Owners may want to pursue a food spoilage tax deduction or the overall costs of food purchases. As the requirements of reporting can vary, it is best to check with your tax preparer for the best way to keep a log and proof expenses.
These are four areas of deduction, but there are many more. Check with a tax prep specialist for other areas of eligibility.