Saving You Money For Life

With everything else there is to remember at tax time, one of the most important for small business owners is to know their deductions. Even if you have someone else prepare your taxes for you, knowing basically what can and can’t be deducted will help you keep a handle on the process.

Insurance that you buy for your small business and your employees is tax deductible. This includes health insurance – at least until President Bush’s proposed tax break becomes law. A large percentage of a small business owner’s personal health insurance premiums are also deductible.

Spousal health insurance coverage can be deducted as well, but it’s a bit more tricky. If your spouse works for the business as well, the entire cost of his or her health insurance as well as medical expenses that were not covered by insurance are also deductible – as long as a medical reimbursement plan for employees is created and available to everyone who works for you and not just your spouse.

Additionally, all insurance premiums paid on the property and building that contain your business as well as inventory and equipment insurance is tax deductible. Life insurance, too, is deductible except in the case of key-persons insurance where the business is a beneficiary, directly or not.

There are always loopholes and exceptions, however. This should in no way be taken as tax or legal advice. Check with a tax professional before filing deductions.

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