Tax Deductions for Painters
One of the major positive aspects of owning and operating your own business is the tax benefits. Business owners can take tax deductions and credits for a variety of business expenses. For painters, their service is important to their clients and community as a whole. So what are some of the tax deductions for painters that can be taken off when tax season rolls around? With Barta Business Group, a small business accounting firm in Denver, Colorado, we can take a look.
Top Tax Deductions for Painters:
- Materials
You must provide your own equipment and supplies for every job. The IRS allows tax deductions for reasonable and necessary supplies and materials. Keep a detailed log of materials used during your painting jobs throughout the year to track the costs associated. For example, if you purchase new drop cloths, roller covers and sponges for each painting job, keep a list of supplies and their costs. Keep receipts as well to deduct these expenses.
- Travel
Another aspect of business you can write off is travel as well as the business use of your vehicle. You can also deduct any vehicle maintenance as well. For instance, if you use a personal truck to haul equipment to and from a job site, you can claim a standard mileage rate, or take deductions for mileage, gas, oil changes, tires and repairs. If you are traveling out of state, you can deduct hotel and meal expenses as well.
- Legal
You can write off fees for professional consultation related to your business. If you hire an attorney to create a contractor agreement or hire a CPA to help with tax returns, you can deduct their fees. You can also deduct the cost of obtaining business licenses and insurances. Any insurance premiums related to your business, including auto insurance (if you don’t take the standard mileage rate) and business liability insurance, qualify for tax deductions.
- Advertising
If you advertise your business in the local phone book, painting trade publications, or the local chamber of commerce, the marketing costs do qualify for deductions. The IRS will also allow for deductions for trade membership dues as well as education and certification expenses. Monthly or annual subscriptions to trade or professional publications also qualify.
About Barta Business Group
Most businesses are great at their craft, but not great at the financial back of the house. Our team of bookkeeping, accounting, and finance professionals guides business owners in making better decisions, so they can focus on doing what they love in their business. We understand the peace of mind that comes from knowing your financial information is done right every time. We value being able to support businesses in turning financial data into actionable insights, so you may plot a course for your company’s future with confidence.