What Are Common Tax Deductions and Credits for Entrepreneurs?
Entrepreneurs can leverage various tax deductions and credits to reduce their taxable income. Some common deductions include: - Business Expenses: Costs such as office supplies, travel, and marketing expenses. - Home Office Deduction: If you use part of your home exclusively for business. - Startup Costs: Expenses incurred before the business begins operations.
Credits might include: - Research and Development (R&D) Credit: For businesses investing in innovation. - Work Opportunity Tax Credit (WOTC): For hiring employees from targeted groups.