If you run a business in Ohio, saving money on your taxes is a big deal. The state offers several deductions that can reduce what your corporation owes. Knowing what applies to your company can make a difference at tax time.
Common business expense deductions
You can deduct many day-to-day business costs. These include rent, utilities, office supplies, and employee wages. Costs for advertising, insurance premiums, and repairs also count. Just make sure these expenses are ordinary and necessary for running your business.
Depreciation and equipment
If you buy equipment or property, you can claim depreciation over time. This spreads out the cost and lowers your tax bill each year. In some cases, you may qualify for bonus depreciation or Section 179 expensing, which allows you to deduct more upfront.
Employee benefits and retirement plans
Ohio corporations can deduct the cost of employee benefits. This includes health insurance, life insurance, and retirement plan contributions. Offering these perks not only helps your team but also lowers your taxable income.
Interest and professional fees
Interest on business loans is deductible. So are professional service fees, like those paid to accountants or consultants. As long as the expense ties directly to business operations, it can usually be claimed.
Stay organized for tax time
To claim deductions, keep clear records. Save receipts, track spending, and document every business-related cost. Good bookkeeping helps ensure you don’t miss out on savings.
Ohio’s tax rules reward smart planning. When you understand your options and stay on top of your records, you set your business up to keep more of what it earns.