Common Business Deductions

Common Business Deductions

Advertising – printing materials, ad design, radio/tv/internet ads, business cards, website fees, client gifts

Car and Truck Expenses – mileage driven, must keep a log

Commissions and Fees – membership dues, subscriptions to publications, licensing fees

Contract Labor – Any wages paid to temporary workers

Insurance – expenses for liability, property damage, E&O, malpractice insurance (does not include health insurance or car insurance)

Interest – Any interest on any loans for equipment, property etc.  Credit card interest for a business credit card

Legal and Professional Services – legal fees, tax preparation, fees for forming business licenses or designations

Office expense – office supplies including – Postage, printer paper, printer ink, letter head, staples, paperclips, paper towels, toilet tissue, software expense, merchant fees, app fees, credit card fees, office cleaning, office furniture

Rent or Lease – Expenses for renting office equipment, storage rooms, office space, booth rent, etc.

Repairs and maintenance – Expenses associated with maintaining or repair equipment used in your business.

Supplies – Supplies that are necessary for the operation of your business.  Any materials used for making products, gas for equipment, hair products (stylist)

Taxes and Licenses – Any business taxes you pay.  Also, sales tax, property tax income tax, any fees associated with maintaining a business license or designation.

Utilities – utility payments at property you rent.  Cell phone is also a utility, however can only take amount used for business not the entire bill.  (If you use the phone for 50% of the time, take 50% of the bill)

Business Use of Home – If you have a designated office space in your home, you make take office expense, can be calculated $5 for every square foot of office space, up to 300 sq feet.

Cost of Goods Sold – Cost of the products purchased for resale.