Top Monthly Deductible Expenses for Your Small Business

As a small business owner, you will have many regular, monthly expenses. In order to get the most out of owning your business, you'll want to ensure that you get the most deductions possible. If evaluating your monthly expenses, you may be surprised at what you can deduct. Furthermore, you may find some services that you had opted out of are also tax deductible and may be worth incorporating into your business.

What Monthly Businesses Expenses Are Tax Deductible?

Internet Connection and Phone
If even a portion of your business is conducted online, an internet connection is a necessity. Accordingly, if your internet connection is not solely devoted to your business, you can deduct a portion of your business. The same applies to your telephone.

Trade Magazines
Trade magazines can give you great insight into new products and keep you on the cutting edge of your industry. The monthly subscription costs to professional journals, website subscriptions, and trade magazines can be deducted in full. Dues to professional societies are also deducted.

Loan Interest
If you've taken out a business loan, your monthly interest is tax deductible.

Utilities
Monthly expenses incurred for utilities such as gas, electric, water, power, and sewerage are deductible based on the percentage of the utility used for the business. If you have a dedicated location for your business, you may deduct 100 percent. If operating from your home, you will need to estimate the percentage of the utilities used for business to calculate your deduction.

Rent or Mortgage Interest
If you work from home, you may deduct a portion of your rent (if you rent) or your mortgage interest (if you own), in a percentage comparable to home use. For example, if you have a home office used strictly for business, you can divide the office's square footage by your home's total square footage to get the applicable percent.

Business Insurance
Business insurance is a must in order to protect both you and your business from liability and damages. This monthly expense is deductible in full.

Auto Expenses
If you use your car solely for business you can deduct all auto-related expenses, such as car payments, gas, garage rent and maintenance. If you use your car for both personal and business, you must keep track of your mileage and deduct your expenses based on the percentage of miles.

Website Hosting
If your business operates a website, feel free to deduct your monthly hosting expenses. Other related services, such as a data backup service for your business data is also deductible in full.