Write-offs are tools to make work (somewhat) fun.
From catered lunches to new laptops, the write-offs we get for improving our office can be a wonderful way to boost employee happiness and retention, while also saving on your taxes as well. Knowing how to approach this powerful tool is crucial, which is why we’ve compiled a few of our favorite write-offs to look at for your team. Check them out below:
A note about write-offs.
Write-offs can be an excellent tool for necessary business costs. With that being said, just because you can write something off doesn’t necessarily mean it’s always something you should buy for your business. Not only does the credit you receive from write-offs vary depending on a bunch of different factors, but it’s a tedious way to spend your time trying to write-off every minuscule expense.
On the flip side, write-offs also can contribute to understanding your buying power as a business. Although write-offs shouldn’t quite be looked at as a ‘line of credit’, balancing write-offs versus liability is always a balance worth keeping an eye on. With that being said, here are a few of the cans and cants of buying for your office:
Everyone gets to write-off supplies. What are supplies you ask? Anything that in the eyes of the IRS are reasonably used to conduct your business. Even things like laptops or new cell phones (as long as purchased for business use) can be written off. Additionally, small things like pens, notebooks, or calendars can be included too. Always a good category to include, supplies are nothing to sleep on.
Equipment differs from supplies in that it usually includes larger purchases that might have to be bought on credit, such as machinery or an automobile. As these are often depreciating assets, these purchases lifetime value is contingent upon the credit rate you got for the items, as well as the projected resale value when you’re anticipated to sell.
Company Parties & Events
Want to boost your reputation amongst your team while saving on write-offs? Throw more events. Not only are these great tax write-offs, but they also can help educate and entertain your staff. Plus, it’s a great way for everyone to network and get acquainted with one another, boosting morale too.