Why Small Business Tax Deductions Matter
The life of an independent insurance adjuster can be very exciting and rewarding. You will often find yourself traveling the country, standing right in the thick of things as history unfolds, or being that one thread that holds a family together after an unthinkable disaster. As an adjuster, you will play an important role in restoring the lives of those affected by tragedy.
From the business perspective, however, there are certain costs associated with the ever-changing demands that are often required of the independent adjuster. Knowing how to mitigate these costs is one way to ensure your success as a self-employed IA. Many of your incurred expenses are actually tax-deductible. This means it is vitally important that you maintain accurate records and keep any receipts that are related to your assignments.
Examples of Tax Deductions
There are many expenses that can be legally deducted from your taxes. Being familiar with these will help you get the most out of your business. Some of these small business tax deductions include:
- Gasoline and mileage
- Automobile maintenance (for a personal vehicle if used in business)
- Cell phone expenses (if used as your primary contact for business transactions)
- Pens, pencils, paper, appointment calendars, staples, and folders, as well as other clerical supplies
- New laptop or tablet used for claims
- Business website hosting and web design
- Hotel expenses
- Meals while traveling
- Airline tickets
- Rental cars
- Office space rental
- Advertising expenses
When becoming self-employed as an IA, it’s a good idea to hire a tax accountant. They can help you decide if you should work as a sole proprietor or structure your business as an LLC, and they can also help make sure you make the most of your small business tax deductions.
If you have considered becoming an independent insurance adjuster but have been concerned about the costs associated with business ownership, the list above gives some ideas how to ensure you are getting the most credit possible for the expenses you incur. If you would like more information on how to become a successful independent adjuster, please visit our website. Here you will find valuable resources to help you thrive in the exciting and lucrative world of independent insurance adjusting.