What types of expenses can be deducted for small businesses in Ohio?

Small businesses in Ohio can take advantage of various deductions to reduce their taxable income, thereby alleviating some of the financial burden of operating a business. Generally, ordinary and necessary business expenses are deductible under Ohio tax laws. These expenses can include costs related to business operations, such as rent or lease payments for office space, utilities, property taxes, and insurance premiums. Additionally, expenses for wages, salaries, and employee benefits that the business pays to its staff are also typically deductible. Businesses may also deduct costs associated with supplies and materials that are necessary for production or service delivery. This encompasses inventory purchases, office supplies, and even equipment costs that are essential to running the business. Moreover, expenses incurred for advertising and marketing efforts aimed at promoting the business can be deducted as well. There are also deductions related to travel expenses, which cover transportation, lodging, and meals when traveling for business purposes. It is important to maintain thorough records of such expenses to substantiate the deductions claimed. Furthermore, small businesses may be eligible for deductions related to vehicle expenses if a vehicle is used for business activities. For accurate guidance on specific deductions and to ensure compliance with current regulations, one might refer to the Ohio Department of Taxation’s website, where detailed information related to business deductions is available. This resource can assist in understanding the nuances of what qualifies as a deductible expense.