Posted by Fred Lake

Year End Tax Write-offs for Small Businesses

Year End Tax Write-offs for Small Businesses

The end of the year is usually a busy period for many firms – both small and big businesses. If you are a smart business owner, it could also be a time to take advantage of a holiday tax write-off. With this in mind, here are ten holiday tax write off ideas that can help your business:

Give Out Holiday Gift to Your Business 

This is an excellent way to take advantage of pass through laws as the year runs out. It is also an excellent strategy to take advantage of a personal tax return. It also helps reveal that you have what it takes to run your business.

Defer Some Income 

One good[ol way to take advantage of a lower tax rate is to defer income. This will inevitably come up in the New Year code, and businesses can make this work for them. As a result, you can wait until the New Year to bill services you produced at the end of the year.

Get Vital Office Supplies Now

It does not make sense tax-wise to postpone the purchase of essential office supplies. Simple office supplies that you can afford like printer, cleaning supplies, toner for the printer, etc., can be gotten. All you need to do is write off the cost for the coming year.

You can even buy things you do not need right away like stationeries, toiletries, and many others.

Look for the Year’s Bad Debt

Should there be bills that have been around for a couple of years, it is a good idea to write them off as a bad debt. Bad debt is a debt that cannot be recovered. Typical examples are debts with a variable or high-interest rate that were used for items that lose value.

Bad debts could be a loan to another business or an employee. Examine your records and consider what is outstanding. 

Have Employee Benefit Plans 

One of the best holiday or Christmas gifts your employees will likely appreciate is the provision of healthcare plans to them. This comes with two distinct advantages. Now only will you make your workers happy, you get to secure their future. This is a thoughtful gift as the future of the Affordable Care Act is becoming gloomy and uncertain.

Have a Holiday Party

Getting into the holiday spirit and making it revolve in your firm is another way to enjoy holiday tax write off. You, however, need to be careful.

Kevin Miller has the following to say:

“To steer clear of an audit, the best practice for writing off holiday parties is to keep them separate: throwing a party for employees and their families is 100 percent deductible; inviting vendors and clients to your holiday party can be partially written-off if all interactions remain business-related," he says. "Keeping good records (guest list, invitations, party-related expenses) will be your best protection."


Another holiday tax write off you can take advantage of is traveling. This, however, is not about visiting friends and families. Visits to clients, business associates, board members to advance the business for the coming year make sense. These trips will make you enjoy holiday tax write-offs

Make a Thoughtful Charitable Donation 

One of the reasons for the holiday season is sharing with the less privileged. If you are smart with this, it can come off as a tax write off for you. As a rule, however, charitable deductions do not apply to business tax returns but personal returns. Besides, it is essential to note that advertising stands out from charitable donation, based on the IRS specification.

This is why paying for an ad for your firm in the program of a local foundation production will support the foundation. But it does not qualify you for a tax write off. 

Have Treats around the office

An excellent way to keep your workers motivated and also enjoy a tax write off is to have a series of treats in every corner in your firm during the holiday. While this will qualify you for tax write-offs, be sure not to overdo it as it can subject you to an audit.

Concluding remarks 

The above are effective ways to motivate your employees as the year runs out and also enjoy a tax write off in return.

Fred Lake
Contact Member