For many folks, especially business owners, one of the biggest erosions of wealth can come from taxes. They can take up a significant expense from your income, but there are many ways that businesses can take deductions and writes offs as well. For a pool company business, for instance there are various expenses that can be deducted from what you owe at the end of the tax year. With Barta Business Group, a Denver, Colorado small business accounting firm, lets look at a few of the tax deductions for pool companies.

Tax Deductions for Pool Companies: What You Need To Know

With the helpful insight of Barta Business Group, providers of small business accounting services in Denver, we can look at tax strategies for pool companies. This way you can save the most money on your taxes, potentially saving thousands of dollars from going out the door. 

For example, section 179 lets pool companies get big tax breaks for making large purchases such as heavy equipment and vehicles intended for business use. However, smaller operating expenses can really add up to give you significant breaks on your taxes as well. 

Let’s look at what those look like.

1. Vehicle Expenses

If you have a vehicle associated with your business or perhaps multiple vehicles for your team than you can either take the standard mileage deduction, or can expense your vehicle costs. As of 2019, the standard mileage deduction for business use is 58 cents per mile. If you think you’ve spent more on vehicle expenses like gas, oil, maintenance, tires, registration, license, tolls, etc. during your business-related travel, then you might be able to bundle those expenses and deduct them.

2. Employee Salaries, Wages and Commission

Employee salaries and wages are tax deductible to you. Whether you pay employees an annual salary, an hourly wage, a commission, or a combination, their gross W-2 earnings are deductible to you.

3. Tools

Tools that cost less than $2,500 don’t usually qualify as office equipment. And while their replaceable parts can be considered office supplies, the tools themselves aren’t really office supplies either. However, if you purchase tools for your business, you can write-ff that expense on your taxes. Any tools of the trade would all fall under this category.

Those are just a few of the various tax deductions a pool company could take off at the end of tax season.

Final Tips: Tax Deductions for Auto Mechanics

If you want to take full advantage of tax deductions available than keeping records of your business, the transaction is a must. If you fell behind on your record-keeping last year, then keep your records updated this year to make the most out of next year’s tax breaks. 

There is software out there that can help with this. Programs such as Xero and QuickBooks can import your transactions and help you sort them into business and personal categories. This kind of software can also help you file your quarterly taxes and estimate your upcoming tax payments so you don’t get hit with any surprises. With that, you can also write off the subscription fees or payments you make for the software as business expenses.

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.