Tax season is right around the corner, and for the self-employed this means that there are multiple tax breaks and deductions that you should be taking advantage of. With the combination of higher living costs, healthcare costs, and your own business-operating costs you’ll want to ensure that you get all the possible deductions available to you.
Vehicle Deductions
Be sure to keep mileage records for when you travel for business. This can also be travel your spouse does on behalf of you. At the end of the year apply the standard IRS mileage rate your travel distance, and don’t overlook this easy tax break.
Home Office
If you have tucked away somewhere in your home a place that you do business, then you have a right to deduct that from your taxes. The oft-overlooked deduction can cut big money come April. The IRS even says that people who conduct business outside the home but still maintain a home office for client, patient, or employee meetings qualify for this deduction. You can even deduct things like rent, mortgage percentages, utilities, repairs, and so on. And depending on whether they are direct or indirect, some are 100 percent deductible.
Education and Training
If you have attended any courses or training seminars that benefit your business then you can deduct the total fee amount, books, training materials, and travel expenses. Additionally, you can deduct any research you did on your own, including magazines and books you purchased before or after.
Healthcare
If you are currently paying for you and your family’s health insurance out-of-pocket, then you can deduct that by 100 percent of all your premiums as an overall adjustment to your business expense. The little known deduction was approved by the The Small Business Jobs Act of 2010.
Eating Out
If you went out with friends or colleagues at any point and discussed business, than you can write it off. That meeting has just become a business meeting and now qualifies as a business deduction. A mistake is made by thinking that any work you do away from your office isn’t business-related. You have just as much right to these deductions (as a small business) as anyone who runs a business. Just keep your receipts!
Want more information on how we can help you this tax season? Contact us (480)270-2802) any time for all of your financial needs.
