You’ve spent all year diligently keeping your business receipts. Now it’s time to use them. But do you know what you can deduct for your business?
Here are 6 deductions you may be able to take on your taxes this year*:
Setting up a gym or a yoga studio requires a lot of equipment. From treadmills to yoga mats to full length mirrors. The good news is that all of that is tax deductible. Time for an upgrade to some of your equipment? Talk to your bookkeeper about when it’s best to incur those costs so you make the most of your tax deduction.
- Music, CDs and audio equipment
Your gym is never silent, right? Any equipment you have that pipes music into your studio is tax deductible. This includes music streaming services. But be careful. Platforms like Spotify are for personal use only. So not only are you technically not allowed to use it for your business, it’s definitely not a business expense.
- Insurance premiums
As a place where people are throwing around heavy objects, your insurance premiums are probably quite high. The good news is, that while that’s a lot of money out of pocket, it’s tax deductible. That shouldn’t stop you from shopping around to get good rates. If you don’t have insurance you should talk to your lawyer. The requirements can differ by state and even city, so you’ll want to be sure you’re compliant.
- Set-up costs
You probably put a lot of money into your studio before you ever even opened your doors. Don’t forget those costs when it comes time to take your deductions. This includes your advertising, facilities costs, equipment, and even your fees to get your bookkeeping system set-up. Keep track of everything as you go so you’re not struggling to remember costs and track down receipts.
You know that big fancy space you rent out to house all of your equipment and clients? It’s a tax deduction. When picking out a space for your studio or gym you want to go in with a clear list of requirements. Visit other gyms and notice what you like and what you don’t like about them. It’s also a good idea to rent a space that can allow you to grow. But be very clear on your projections and how many clients you think you’ll have in the next 1-5 years. While it’s a deduction, you don’t want your rent to be so high that it’s eating up your profits.
You can’t run a fitness business without employees. And those employees are a deduction. That includes your costs for training them, providing them insurance, and even giving them uniforms. Safety training is a good idea for fitness employees, so talk to your accountant or bookkeeper to find out when the best would be to incur those costs. It could be a factor in whether you’ll be getting a check from the IRS or sending them one.
It’s always a good idea to work with your bookkeeper ahead of tax time to find out how your books are looking. If there’s money in the budget, you might want to move forward big purchases so you can take advantage of the deductions.
Contact us for a free consultation and we’ll help you get tax-ready books in no time.
*The above information should not be used in any actual transaction without the advice and guidance of a professional tax adviser who is familiar with all the relevant facts.
Although the information contained here is presented in good faith and believed to be correct, it is general in nature and is not intended as tax advice. Furthermore, the information contained herein may not be applicable to or suitable for the individuals' specific circumstances or needs and may require consideration of other matters.
BookKeeping Express Enterprises Inc. assumes no obligation to inform any person of any changes in the tax law or other factors that could affect the information contained herein.
IRS Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.