If you run a pet retail store, you most likely use software and mobile applications to help you with your daily operations. Even if you have a brick-and-mortar store, you probably used computer programs to handle inventory, payments, and routine communications. Sound familiar?
The good news is that the cost of software, applications, and online tools can be tax-deductible. What can you deduct and how can you do it? Before you start claiming deductions left and right, we’d like to note that it’s a good idea to consult with a tax professional.
Deduct Internet Services
Is your business able to run without the internet? If not, then there your internet services are probably tax-deductible. The cost of the internet is deductible either as an office expense or a utility expense. If you have a stand-alone pet retail store, you can deduct the entirety of this expense. On the other hand, if you are working out of your home, you can only deduct a portion of your internet usage that is business-related. For help with this calculation, it might be a good idea to reach out to a trained accountant.
In addition, the cost of your internet service is probably only one portion of your total internet expense. For example, if you have your own server, domain registration expense, and web hosting provider, the expenses related to these services are likely tax-deductible as well.
Deduct Mobile Applications
Do you have a separate phone line for your business? Do you have subscriptions to multiple mobile applications that you use to keep your business running? If so, then these expenses are tax-deductible as well. For example, if you pay for video-conferencing software, this is another online business expense that could be tax-deductible. If you use them solely to run your business, then you are able to deduct 100% of the cost from your tax return.
Software Programs Are Tax-Deductible
Do you have software programs on your computer that you use to run your daily operations? For example, if you pay for a suite of Microsoft programs, the cost of these is tax-deductible as well if you use them for business purposes. Did you purchase other software that your business needs to operate? Do you have an online program you used to handle your payment processes? You could claim these as a tax deduction as well if you use them for business purposes.
Finally, keep in mind that these items are only tax-deductible if you decide to itemize. If you decide to claim the standard deduction instead, these itemized deductions might not be relevant to you. You might want to tally up your itemized deductions and compare them to the standard deduction. Then, you can see which is better for your tax return.
Rely on NextPaw Software for Your Pet Business
If you have a pet business with a lot of online expenses, you may be able to rack up significant tax deductions. For help running your pet retail operations, rely on NextPaw! NextPaw is a software suite that can help you sell products and services online! Contact us today for a free demo!
**Relevant to Businesses in the United States Only