Tax Benefits for Small Business Owners

The IRS focuses on small business owners and provides tips and tax benefits to help them get the most out of their operations.

First, many small business owners can claim the home office deduction. To qualify, a business owner must use a specific room in the home exclusively for business.

To claim the credit, filers should use Form 8829 Expenses for Business Use of Your Home. This form calculates the credit based on the expenses of home operations related to personal and business use. Additionally, businesses can often deduct business-related food and beverage purchases. To qualify, the owner or one employee of the business must be present at the time of sale. Note that grocery or convenience stores do not qualify for this deduction. Look for more information on the IRS website.