Tax Breaks Every Business Owner Should Know About

As a small business owner, you’re probably well aware of the challenges associated with keeping your business up and running—and turning a profit. Each day offers greater potential, but you must first learn to navigate the potential pitfalls.

Of course, it helps to take advantage of any tax breaks that come your way. According to the experts at LoanMe, here are five you don’t want to overlook.

  1. Interest deductions on small business loans. If you occasionally have to borrow money to operate your business, you’re not alone. Fortunately, the interest on business loans may be deductible. Keep in mind, however, that these deductions don’t apply if you borrow from friends or relatives. And since every situation is different, it’s always best to check with your tax attorney.
  2. Business mileage. This is hardly big news, especially if you’ve been in business for a while. But you may not know that the 2016 mileage credit is 54 cents per mile. To qualify, your business must operate fewer than five cars, and you can’t claim Section 179 deductions on your vehicles.
  3. Cell phone and depreciation. Like many business owners, you probably rely heavily on your cell phone when managing the daily operations of your business. As of 2010, you can deduct the cost of your cell phone as well as the cost of phone depreciation.

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