If you are the owner of a salon or rent a space you need to keep a box of receipts, or run a spreadsheet online to keep track of expenses. Many can be used as a tax deduction at the end of the year. If you are not doing this you will be surprised how much you spend on product and supplies.
- License fees
Any mandated license required for you to do business can be a deduction.
If clothes are used only for work, such as an apron or uniform then you should be safe taking the deduction. If it is a dressier look that you use on and off site then it most likely does not qualify.
Any supplies used for business can be a deduction. Shampoo, conditioner, spray etc. If you provide makeup think about how much you spend every 2-3 months. It adds up fast.
Education is a deduction after you become licensed, not before. This can include cost to get to the class and hotel, meals and normal expenses associated with travel.
- Other Overlooked
Just about any expense you have running your salon. The cost of painting, repair of air conditioners, cleaning services that clean the salon, paper and computer supplies, phone cost, marketing etc.
- Furniture for Salon
This deduction can be taken all at one time or must be divided up depending if you are a new business or already established. the cost of salon chairs and shampoo chairs can be in the thousands so be sure and get advice before buying. It could be cost savings waiting till the new year depending on your individual tax situation.
- Do some research and learn more about tax deductions for hair salons.