4 Tax Deductions For Small Business Owners

February 16, 2015

It is nearing that time of year when small business owners are gathering the paperwork necessary to prepare this year’s taxes. However, don’t overlook these tax deductions for 2015:

  1. Entertainment

One of the most common business expenses is entertainment. Having a breakfast or lunch meeting with a client or prospect at a restaurant , or just getting together for coffee is tax deductible as long as it is a genuine business meeting. You should keep a record of the meeting, including the client’s name and what was discussed as well as the receipt from the restaurant. Only 50% of the bill is tax deductible, however.

  1. Email Marketing

How many social media posts do you read each day versus your emails? If you are like most people, you read a few social media posts every day, but you read all of your non-spam email. Therefore focusing on email marketing makes sense. There are several companies that can provide you with paid email campaigns to send communications to your prospective client list. And although you will have to pay a fee for this service, you can deduct all of it.

  1. Networking

One of the most effective marketing activities for small businesses is networking, in person and online. Networking allows you to build relationships that eventually will lead to referrals of new clients. Networking activities are tax deductible, including membership fees to such organizations as your local chamber of commerce or service organization.

  1. Sponsorship Marketing

Your business may not yet have enough income to advertise in print or television media, which can be very expensive. But there are other ways to keep your business before the public. Sponsoring the local football team or participating in a local charity event are examples of strategies that can promote your business to attract new clients. Your efforts are deductible as advertising costs. To be seen supporting the community and contributing to its economic development is extremely powerful and creates enormous goodwill.


Taking advantage of these tax deductions can go a long way to helping small business owners lower their overall tax bill.

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