One of the great things about self-employment, and there are many, are all the tax deductions you can take. But, beware, because the IRS is monitoring and you want to be sure your business deductions are both ordinary and necessary for your trade or business. Below are a few common expenses your business may be allowed to deduct.

  • Supplies
  • Auto Expenses: Mileage on your personal car, keep good records
  • Business Insurance Premiums
  • Health Insurance Premiums: If self-employed and unable to participate in spouse’s employer plan
  • Self-employed Retirement Plans
  • Computers, Equipment, & Furniture: Either expense it or depreciate it
  • Internet & Telephone: Split between personal and business use
  • Professional Fees: Trade associations, legal, accounting fees
  • Continuing Education & Training
  • Business License
  • Interest Paid: Business loans or credit cards
  • Entertainment: Limited to 50% of the total
  • Meals: When traveling away from home, limited to 50% of total
  • Business Travel Expenses
  • Advertising
  • Postage and P.O. Box Fees
  • Business Publications
  • Labor
  • Website Expenses
  • Self-employment tax: Half of the self-employment tax you pay can be deducted
  • Home office deduction: If you work from home you can deduct the costs associated with maintaining a home office
This entry was posted in Small Business, Taxes by tentalentscpa. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *