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There are many perks to being a business owner, like being you own boss, making your own schedule, putting a higher dollar value on your time, and pride of ownership. Another great reason, you want to own a business because you can qualify for higher credit card limits and these credit cards do not affect your personal credit once you’re approved and if you’re set up as a C-corporation.

However, one the biggest most benefits are the business tax write-offs.  Business ownership does have a price, especially when you’re using the banks money to help fund the business.  The good news is that business bank fees can be tax deductible and we give you a few examples here:

Annual Fees

Annual fees on a business card are tax deductible. This may be a great way to justify getting that card with the steep annual fee that also has amazing rewards. Yes, you can write it off, but keep in mind that the primary use of the card needs to be for business purposes and not for personal use.

Late Fees

Hopefully you’re not incurring late fees on your credit cards, but mistakes happen and you sometimes forget to make a payment. Those fees can be written off for your business taxes. Of course, it’s always best to call the company and explain you simply forgot and ask if they can waive the fee this time; saving $35 is almost always going to be better than claiming a $35 tax deduction.

Interest Charges

Again, in an ideal world you won’t be paying interest on any of your purchases. But there are times when you need equipment, and there just isn’t enough cash in the bank to pay for it right away. Those interest charges are all tax deductible.

Swipe Fees (point of sales fees)

As a business owner, you pay the credit card company every time someone uses their card to pay you. These are always business-related expenses and fully tax deductible.

Miscellaneous Fees

There are sometimes other fees associated with using a credit card. For instance, your cash advance fees are deductible.  

Wouldn’t it be great to turn your fun trips into tax cuts? If you plan to take any trips this summer, here are some ideas that will help you get the most out of your travel budget.

1. Make all your business appointments before you leave for your trip.

Most people believe that they can go on vacation and simply hand out their business cards in order to make the trip deductible. Wrong.

You must have at least one business appointment before you leave in order to establish the "prior set business purpose" required by the IRS.

The first thing that you need to do is set up appointments in the various cities that you will visit before you leave. One way to establish this is to post an ad for distributors in the town’s newspaper. You could then interview those who respond when you get to the business destination.

2. Make It All "Business Travel."

In order to deduct all on-the-road business expenses, you must be traveling on business. By definition, you are on business travel whenever you are sleeping overnight in a strange bed - conducting business, that is!

3. Make sure that you deduct all of your on-the-road -expenses for each day you're away.

For every day you are on business travel, you can deduct 100% of lodging, tips, shoe-shines, laundry and dry cleaning, car rentals, and 50% of your food. According to the IRS, no receipts are required for any travel expense under $75 per expense. The only exception would be for lodging.

4. Sandwich weekends between business days.

Interestingly, the IRS notes that if you have a business day on Friday and another one on Monday, you can deduct all on-the-road expenses during the weekend.

5.Make the majority of your trip days business days.

The IRS says that you can deduct transportation expenses if business was the primary purpose of the trip. The majority of the days in the trip must be for business activities. Otherwise, you cannot make any transportation deductions. This is an all-or-nothing proposition.

With proper planning, you can deduct most of your vacations if you combine them with business. That can make your life a lot less taxing!

To learn more about tax strategies for small business owners, sign up for my newsletter at www.tbsusa.com.