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Salon Suite Rental Tax Deductions You Can Claim

By May 19, 2023Salon Spa Blog
Fort Worth microblading business

This article is for those of you new to the salon suite rental industry, or new to business ownership, or both.  It is a bare-bones article, hitting the highlights of tax deductions, but it is in no way an in-depth article.  For specifics regarding income tax deductions, we suggest you check the IRS.

We are Salon & Spa Galleria, leading the way in Fort Worth with twenty-two salon suite rental locations. Call us at 817-917-1416 for more information about renting luxury salon suites in the Greater Fort Worth area.

The basics regarding salon suite rental.

Perhaps it’s the word “rental” which confuses people so much, but the fact is that most retail businesses rent their retail location.  In the case of salon studio rentals, instead of renting a building for your business location, you are simply renting a salon studio rental, one or two rooms, in a larger building which rents the suites to beauty industry professionals. The advantage of this is obvious: you do not need the large amount of cash required to purchase a retail building; all you need is a small amount of cash to pay your first rent period.

Thus, you cannot deduct interest payments on a bank loan, nor can you claim depreciation on the building.  However, most other business deductions can be claimed, so let’s talk about those now.

Basic salon suite rental tax deductions.

You pay rent for your salon suite and that is a legitimate business expense.  Any cost of any product you sell, the cost of any supplies you use, the cost of insurance, advertising, business-related travel, professional certification, professional training and education, uniforms, all are tax deductible.

Usually the utilities and WiFi are a part of the rental price, but if they are not, those are deductible as well.  One area many business owners run afoul is the cost of a telephone. If that telephone is only used for the business, no problem in claiming that expense; if, however, it is used for business and pleasure, you will have to find a way to keep track of the business percentage of use, and that is tricky at best.

We have found the IRS to generally be very easy to work with, and red flags only fly when it is obvious that a deduction is beyond normal parameters.

Always keep meticulous records.

The best way to protect yourself is to keep every receipt and keep meticulous records. Is this time-consuming? Yes! Is it tedious at times? Yes! Will it save you a major hassle in the future? YES!

If you are still uncomfortable with all of this, hire a tax accountant.  Will it cost you money? Yes!  However, even that cost is tax deductible, and it will allow you to sleep well at night.

A final word about Salon & Spa Galleria.

Twenty-two salon suite rental locations in the Greater Fort Worth area. Luxury salon suites starting at a low $75 per week, and that price includes utilities, WiFi, laundry facility, your own web page, security monitoring, and 24/7 access.

What’s not to love about Salon & Spa Galleria?  Call us today!