New England B&B owners need to have a basic understanding of business income versus business expenses, even if they have a tax accountant else prepare their taxes for them.  The best way to gain that understanding is to sit down with your accountant and have him or her explain the basics to you, but in lieu of that here is a quick rundown on the business expenses a Massachusetts bed and breakfast owner can expect to have.

• Real estate - Of course, whether you buy or rent your bed and breakfast, this is a huge business expense and totally deductible.  Rent is pretty straightforward, but if you bought the building that tends to be a little more complicated.
• Furnishings - Vermont inns and other New England B&Bs tend to be furnished a certain way.  All of the furnishing you buy for the rooms is completely deductible as a business expense.
• Food - You will need to keep track of B&B food versus your food, but the ingredients you buy to make breakfasts for guests is also completely deductible.
• Staff - If you hire anyone to help wait tables, clean the rooms, do the bookkeeping and the taxes, or for any other purpose that has to do with the operation of your B&B, it is a business expense and completely deductible.

Well, you get the idea.  If you think of anything I’ve left off, please feel free to leave it in the comments!

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