Don’t Miss These Important Tax Deductions for Salons and Spas
As a small business owner in the wellness or beauty industry, every dollar counts. You don’t want to spend more than absolutely necessary. Tax season (especially in a pandemic) is no exception. If you’re not sure which expenses might qualify as a tax deduction, though, read on!
We’ve worked with our go-to tax partner, Bench, to create a list of tax deductions that salon and spa owners should be on the lookout for.
Here are some tax deductions that you need to know (and use to your advantage) as a salon or spa owner this year:
1. You can deduct furniture and equipment expenses
Necessary equipment you’ve purchased to support your business is deductible. This means those salon station chairs and carts you bought in the last year can help you save a little now. Nail salons, make sure you’re itemizing any stools, tables, and equipment that you purchased. Spas, consider new massage and facial tables used by your practitioners. Even waiting room furniture and product display purchases count.
2. Products and tools qualify for tax deductions
Surely in the past year you’ve invested and reinvested in product lines, tools, and supplies. You can declare these purchases as well. Items that may fall into this category vary depending on your type of business. For hair salons, think shampoo, conditioner, and other styling products. Styling tools like dryers, straighteners, and curling wands also make it the cut. Even consider clips, caps, towels, and smaller items. Nail salons, don’t forget polish, acrylics, files, and UV lamps. Spas can deduct skin care products and tools like facial steamers and microdermabrasion machines.
3. Employee-related expenses may be deductible
You put a lot of time—and money—into your team. You’ll want to verify that you’re reaping the benefits of proper deductions for big expenditures such as employee salaries and benefits. Even uniforms and tunics worn during work hours can help you this tax season. Don’t miss out on itemizing these expenses.
They say time is money. When it comes to tax season, spending a little time figuring out your deductions can save you a lot of money. Use our checklist to get started and be sure to discuss with your tax advisor.
This information contained herein does not constitute financial, legal, or other professional advice and is meant to be used solely for informational purposes. It does not take into account your specific circumstances and should be not acted on without full understanding of your current situation, future goals and/or objectives by a qualified professional. Mindbody and Bench assume no liability for actions taken in reliance upon the information contained herein.