Is it a Business EXPENSE?

• When you're working from home and run a mostly or fully online business,
  Knowing what's a BUSINESS EXPENSE sometimes feels tricky.
  
  This is one of the most common questions I get.
  
  And I get it!
  It's all me. I'm "the business", so why wouldn't "this" or "that" count as a business expense or deduction?
  
  The true definition (words by our beloved IRS) is that any expense that is ORDINARY and NECESSARY for you to run your business is deductible.
  
  
  
  For example:
  

• software subscriptions, like Quickbooks or your CRM / EHR

• your office space and supplies

• trainings and conferences

• those occasional in person events

• gifts for your clients

• your advertising expenses, like ads, website, and social media

• your computer and accesories

• your contractors

• employees

• anything you use to actually provide or produce what your selling

• your business licenses and registrations
  
  Working from home and deducting this space and expenses needs more attention from your tax expert. Please consult them regarding this topic.

When something is kinda personal, kinda business, you might be able to get a percentage of that expense as a deduction during tax season.


This varies by industry, so you're right by not feeling like it's black and white.

The thing is it has to be acceptable and common between your peers.

The best thing to do is to speak to your tax expert.
NOT only during tax season but throughout the year, especially if you have a business trip or a large expense coming up.


Remember to always always ALWAYS save all receipts and all supporting documentation.


Bonus tip: DON'T use vague categories like "Miscellaneous" to track your expenses.

Not only you might be missing out on deductions, it extends the work of your tax preparer, but you also lose control and awareness of where your money is going.

A good bookkeeper on your side will maximize your expenses and will give you a better understand of how your business is running.

That’s exactly what I do! Book your free call with this link

https://calendly.com/liquidcentsbookkeeping/scheduleacall

This is for informational and educational purposes only. Please seek individual legal and tax advice.