Tax Day is right around the corner – literally! With that in mind, we’ve been working on a series of posts that are geared towards answering the hard hitting questions that we often receive from small business owners who are frequently reaching out to us. If you’re interested in learning about the industry-specific tax breaks to look out for this year, and you have questions about how to prepare for them, look no further!
This week, we’re examining some specific Hair Salon related tax deduction information. Now, whether you’re the owner of a Hair Salon, or just renting a booth at a Hair Salon, we know that you’re running a business that is often more of a lifestyle – strap your seatbelts on and hold on tight, we’ve got a lot of information about some (perhaps surprising) things that you can write off on your taxes this year.
CLOTHES & SUPPLIES
We know that a lot of Hair Salon owners and Hair Stylists are constantly updating their gear. From aprons to clippers, and shampoo, it’s important to remember that these work-related expenses are absolutely tax deductible! The most important thing to remember is that you absolutely need to itemize these deductions! What’s more, you need to be reasonably certain that you’re not going to be reimbursed for these items by your employer/the salon from which you rent a booth. Even assuming that you actually own the salon that you work at, you still need to itemize these deductions.
What are some examples of clothes and supplies, you ask? Aprons, the kind you won’t wear unless you’re cutting/styling somebody’s hair, are a great example of this type of expenditure. Clippers, scissors, combs, hair products also fall in this category, and can be itemized and deducted from your taxes. (A fun fact: You can also deduct certain services on your taxes for your hair-related business. For example, if you have to have your clipper blades/scissors sharpened, this is a necessary business related service, and is a great tax write-off!)
START-UP COSTS
So, what if you started your hair salon business during the tax year? Even if you’re renting a booth, being self-employed has its benefits when it comes to tax season. You can deduct up to $5,000 of the costs that you ran up before you opened the doors to your new business! This even includes ‘Research and Experimental Costs.’ Who would have thought that you could deduct costs for expenses unrelated to the current day-to-day operation of your business?
LICENSURE
It’s no secret that maintaining a small business as a hair stylist/salon owner comes with a pretty significant level of required education and licensure on a state-by-state basis. Oftentimes, people tend to overlook this sort of deduction…but maintaining the necessary credentials for regulatory work like this can be costly, and so it’s a super useful piece of knowledge to be aware of the fact that you can deduct these costs.
Even if you’re getting your training through an apprenticeship, you should still record the costs and keep careful records of it. This sort of training also serves as a tax deduction!
LET’S RECAP…
It’s important to remember that, as a small business owner, you needn’t be weighed down by business related costs that you can deduct! We understand that starting a business like this isn’t easy, and it certainly isn’t free. We’re dedicated to helping you understand what your fiscal opportunities are as proprietors of small businesses. We invite you to have a look at some of our services and see what we can offer you.
We are dedicated to serving all of our clients with the highest degree of professionalism that is possible – because we value you and your business as much as you do.
Should you have any questions about our services, or about preparing your taxes, please don’t hesitate to give us a call at 844-841-9857, or schedule your free consultation.