Running a cleaning business can be rewarding; it’s really all about helping people and making their lives better. Imagine a busy mum trying to juggle home and work. Having a cleaning service to rely on takes off some stress and gives her time to focus on other things. But that doesn’t make running a cleaning business any easier. You work long hours and perform physically demanding chores; while the tips and happy faces make it worthwhile, taxes do the complete opposite.
So, how can you make the most of tax write-offs for your cleaning business? Let’s dive into the specifics and uncover some money-saving tax deductions you can take advantage of in your cleaning business.
What Type Of Expense Is Cleaning?
As a cleaning business owner, the IRS allows you to write off ordinary and necessary business expenses. Ordinary expenses are costs that other business owners in your industry incur to operate their business. In contrast, necessary expenses are expenses that are required to provide services and run your business.
For example, your business licensing and cleaning supplies are part of ordinary and necessary expenses associated with running a cleaning business. If you can prove to the IRS that your business-related expenses are ordinary and necessary, you can write them off with ease.
Key Deductions You Should Know
- Travel Related Expenses
Traveling to different client spaces throughout the day to offer your cleaning services is something you can’t avoid as a cleaning business owner. If you or your employee use personal vehicles for work-related travels, you can deduct the associated expenses such as oil changes, gas, or repair from your taxes.
- Home Office Expenses
You can also deduct the cost of your cleaning business office from your taxes; however, your office must be your primary place of business and be exclusively used to facilitate your cleaning business directly. Costs associated with home office expenses include rent, property taxes, utilities, mortgage interest, and others based on the percentage of your home used for your business.
- Marketing And Advertising
You can deduct expenses related to marketing and advertising your cleaning business, such as brochures, flyers, business cards, and other promotional materials.
- Retirement Contribution
You may be able to write off your contribution to a retirement plan, such as your Individual Retirement Plan (IRA). These contributions help you save for retirement while reducing your taxable income.
- Self-Employment Taxes
As a self-employed business owner, you are required to pay self-employment taxes, which include Social Security and Medicare taxes. The good thing is that you can deduct half of your self-employment taxes from your tax return; this way, you can reduce your tax bill and increase your take-home income.
Can You Write Off Clothes As A Business Expense?
The IRS allows you, as a self-employed individual and business owner, to write off the cost of specific business clothing related to your business, such as the uniform or protective clothing you provide for your employees when cleaning. This includes furnishing clothing for your employees, providing clothing allowances for particular clothing items, and reimbursing employees for work clothing bought.
Make The Most Of Your Tax Deduction!
Running a cleaning business is like running any other type of business; you want to maximize your profit. It’s like planting a seed and getting to harvest the fruit as many times as possible.
To make the most of tax benefits, you have to be able to maintain accurate records, stay updated with tax laws, and, most importantly, consult a tax expert when your taxes get too complex for you to handle on your own.
Understanding and making the most of the tax deductions you qualify for is one of the biggest tricks you need to up your game. These deductions will not only save you a lot of money but help you expand your business and explore more business opportunities.
Got more questions about maximizing tax opportunities for your cleaning business? Send your questions our way, and we’ll be happy to help.
