Utah is an excellent place to start a business, as far as the climate created by the state government is concerned. There are plenty of useful deductions that business owners are able to take advantage of, too many even to mention in a single blog post. Here are some common business tax deductions in Utah…
Business Operation Expenses
General expenses for keeping a business up and operating are deductible expenses, up to $5000 in your first year, in the state of Utah. This can involve everything from office supplies to office lunches. Whatever you don’t use of this deduction in your first year, you can deduct over the next 15 years.
If you have a vehicle that you use for your business operations, there are two ways that you can utilize deductions for that vehicle. The first is to get the deductions for new vehicles that you purchase for your business. The second way is that you can deduct fuel spent on business travel, as well as deterioration on your vehicle.
Aside from general business deductions, you can also deduct legal expenses that are incurred by doing business. This includes fees that are paid to legal professionals, and potentially can include certain costs accrued by court settlements.
Sometimes doing business means having to travel. These trips can be expensive, after you factor in airfare, car rentals, hotels, food, and many other costs. The good news is that these expenses are also deductible for businesses on their taxes. It’s important to note, though, that the trip must primarily be for business reasons to be deductible.
As we stated above, there are so many different deductions that businesses can take advantage of in the state of Utah. If you’d like to get a real idea of what sort of money you can be saving on your business’ taxes, please contact a tax professional who can navigate you through both the federal and state tax code.
*Please note that this list is not a guarantee of any of these deductions. The tax code is a complicated thing, and is full of many caveats. Please contact a tax professional if you have questions about deductions for your small business.