5 Best Tax Deductions For Small Businesses

4. Internet and Phone

Small business owners can also claim phone and internet expense deductions. IRS provides a 100% deduction of the expenses of a second cell phone used exclusively for business purposes. However, it must be noted that the primary landline of a home is non-deductible, with an exception for long-distance business calls. If a single phone is used for personal and business purposes, the taxpayer must keep a record of business calls to claim for deduction. Small businesses with a retail store or office space dedicated to the business can claim a 100% deduction for internet services. The percentage of service used for business needs must be calculated before claiming a tax deduction.