Self Employed Business Deduction Quick Reference
With several new self-employed clients this year I have been having the business expenses conversation with some frequency while preparing their tax returns for the first time. To help clients get a head start, I put together the following quick reference and figured I would post it for other business owners to use similarly. It is not intended to be a comprehensive list and you should consult your tax advisor and all of that other fun disclaimer stuff.
Startup Expenses
Market survey
Product analysis
Visitation of similar businesses etc
Consultant fees
Travel costs to find suppliers, distributors, customers
Incorporation and legal fees
Costs of Promoting Business
Advertising
Marketing
Website
Mailings
Gifts for customers (limited)
Meals and Entertainment
Work-related meals & entertainment (limited)
Networking (dinner/drinks with potential referral partners/clients)
Meals for subordinates (pizza etc)
Travel
Mileage (or actual) to a work location other than regular location
Travel expenses for job-related education (conferences etc)
Tolls and parking Fees related to business purpose (non commuting)
Passport if necessary for business travel
Dues and Fees
Dues or fees for work-related organizations including union dues
Regulatory or licensing fee for profession
Bank Fees
Payment processing (credit card/ACH) and collection fees
Subcontract Labor
Freelance Labor
1099
Insurances
Malpractice insurance
Errors and omissions
General liability insurance
Professional Advice
Fees for tax preparation or advice
Legal and accounting
Consultant
Physical Location
Home Office IF part of the home is used regularly and exclusively for work
Office Rent
Office furniture
Parking spaces
Property and Equipment
Computers
Software
Small tools or equipment required to perform work
Depreciation of capital purchases
Interest paid on business property financing
Cost of repair and maintenance of business property
Utilities
Internet - Business use only
Second phone lines/cell phones for business use
Electric, water, gas
Trash pickup and shred
Operational Expenses
Office and work related supplies
Copy and printing expenses
Postage, shipping and delivery costs
Answering service
Safety items, such as protective eyewear or steel-toed safety shoes
Specialized clothing designed for job (not suitable for everyday wear)
Dry cleaning costs for uniforms or protective clothing (not everyday clothing)
Books and Publications
Subscriptions to professional journals, magazines, books for your trade or profession
Education and Research
Educational expenses- to maintain or improve skills required in performing present job (conferences etc)
Important Non-Schedule C
Health Insurance
Pension Contribution
For more information check out:
https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses
http://www.jamesdance.com/deductions.htm
http://www.bankrate.com/finance/taxes/dozen-small-business-deductions-1.aspx
https://www.sba.gov/blogs/startup-cost-tax-deductions-how-write-expense-starting-your-business
http://www.forbes.com/2010/02/16/tax-deduction-mba-education-personal-finance-robert-wood.html
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
