- Products, tools, equipment and supplies. Nearly all of the things you buy for your Salon Suite may qualify as a tax deduction. This includes furniture, tools, supplies, products, décor, etc. Make sure you are keeping track of your receipts. HELPFUL TIP: Have one business credit card for ALL of your business expenses. Do not put anything else on the card unless it is for your business. This way, it is easy to keep track and all you have to do is hand over your credit card statements to tax consultant.
- Education. Continuing your education makes you a better stylist and salon owner. Any expenses paid for your education as long as it is helping to improve your skill in your trade or business, you can use as a tax deduction. Keep track of the money you spend on classes and training fees. You can also keep track of any other related expenses like class supplies and books. You may also be able to deduct travel costs for any conferences attended.
- Marketing and Advertising. Marketing and advertising materials such as business cards, flyers, Facebook ads, rack cards, website hosting fees, graphic design payments for your logo and any other expenses are usually deductible as long as they are used to promote your Salon Suite business.
- General Expenses. Any cleaning expenses, office expenses, office supplies, etc. As long as it is for your business, these are generally allowed as tax deductions.
- Charity/Donations. If you participated in the free back to school haircuts, had a day where a certain percentage of sales goes to charity, donated any supplies to a local shelter, you can write them off as a tax deduction. Make sure you have your paperwork in order and/or have receipts for these.
- Business Insurance & Rent. Insurance intended to protect your business (examples include fire, theft, flood, property, malpractice, errors and omission, general liability, malpractice, workers’ compensation). Rent or lease payments on items that aren’t vehicles or equipment ( office or land rent), including any government taxes on those items can be used as well.
- Licenses. Your business and cosmetology license fees are also a deduction if you renewed or received your license in 2018.
2018 was the first year for the new tax bill. If you are overwhelmed and concerned about any of the changes, head on over to IRS website and research any changes. Have no fear though- we’ve outlined a list of deductions you can still use for your Salon Suite business! The most important thing to remembers is that because you are a sole proprietor/business owner, you can still deduct many of your business expenses.
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