5 Best Tax Deductions For Small Businesses

In this article, we will look into the 5 best tax deductions for small businesses. If you want to read our detailed analysis, you can go directly to the 20 Best Tax Deductions For Small Businesses.

5. Vehicle Costs

Vehicle costs are among the best tax deductions for small businesses. Small business owners can deduct vehicle expenses on their tax return. If a vehicle is used for personal and business needs, the costs must be divided based on the mileage for personal and business use. The deductible car expense can be calculated using the standard mileage rate method and the actual expense method. It is vital to determine the deduction method with a larger deduction if a business qualifies for both. The standard mileage rate method utilizes the standard mileage rate of 67 miles/cent in 2024. On the other hand, the actual expense method considers gas, oil, insurance fees, license, repairs, and depreciation attributed to the miles driven for business needs.