Ecommerce Tax Deductions You Need to Consider for Your Business

4 min read

As you manage your own online business, you often need to pay a lot in expenses just to keep everything running smoothly.

But what if you could keep more of your hard-earned cash?

That’s where tax deductions come in.

As an ecommerce business, you can take advantage of a number of tax deductions and lower the amount of taxable income.

Some of these deductions may surprise you.

But before we begin, I should note that I am by no means a tax expert. Consider these points as suggestions for you to consider. You’ll want to talk to the real tax experts for further advice.

1. Packaging Materials

As you send out your products all over the world, you’ll likely be spending money on all sorts of packaging materials.

That can include boxes, tape, labels, paper, bubble wrap, and more.

So if you pack and ship your own stuff, all those items are tax deductible.

2. Cell Phone & Internet

You probably use the internet a lot. After all, that’s where you conduct your business.

The same goes for your cell phone. How much time do you think you spend every month on your phone dealing with business matters?

You may be able to write off some of your cell phone and internet bill.

The amount really depends on how much you use it for your online company. Sometimes, it can be as much as 50% or more of your bill.

3. Home Office Expenses

Do you work from home?

Get ready for some great ecommerce tax deductions.

If you have a home office, you may be able to deduct some of your rent or mortgage.

But to take advantage of this deduction, you need to meet some requirements.

First, you need to use your work area only for business, not anything else. So working from your kitchen wouldn’t apply.

Next, your home office needs to be your company’s principal place of business.

Lastly, you have to use your home office for business reasons a majority of the time.

If you satisfy all of that, you could be good to go with your deduction.

4. Business Software and Tools

I’m willing to bet you use some sort of business software.

Did you know that the software you use is tax deductible?

The same goes for any subscription service software or app for your ecommerce business.

So if you think about it, you may be able to deduct your ClickFunnels expenses as well.

Look at that! ClickFunnels can help you earn more money in more ways than one!

5. Bank Fees and Interest Payments

You likely have a business checking account which you use to manage your business expenses and payments.

Some banks will charge you to use that account. If that’s the case, you may be able to deduct those fees.

At the same time, the interest that you pay on a business loan or on a business credit card is also tax deductible.

Pay careful attention to these amounts and record them for tax purposes.

6. Advertising and Marketing

If you advertise, it may count as a tax deduction.

Even if you place ads in the online space, like on Google or Facebook, any advertising costs you have can be deducted from your taxes.

If you use a service which places ads, that can count as well.

The costs don’t have to be limited to what you pay to place or promote an advertisement. You can even deduct the amount you paid to write and design your ads.

So if you engage in marketing through ClickFunnels, again those expenses can be deducted from your taxes.

7. Professional Accounting Services

If you get more help from tax professionals, you may deduct that cost too!

You can extend this idea to any other professional service you use for accounting purposes.

If you hire a bookkeeper, business lawyer, tax consultant, or others, all the fees related to that can be deducted from your taxes.

Basically, if you hire any professional for help in managing your ecommerce business, the expense is tax deductible.

Work With Tax Deduction Experts

Again, I have to stress that I am not a tax expert. These are simply suggestions on where you might look if you want to discover more tax deductions for your ecommerce company.

Always consult with the experts to get more information and see where the most lucrative tax deductions are.

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