What can you deduct as a business expense?

Today we’re talking about tax deductions for your business! Do you ever catch yourself asking “is this a write-off?” It’s actually not as complicated as you might think! We’re going to talk about what you can and can’t deduct from your taxes and how much is too much! I’ll also update you on some recent changes to the tax code that you should know about. 

Let me save you some time and money and get your business up to date with tax deductions! 

What we’re talking about 

What Counts As A Tax Deduction? What Can’t You Deduct On Your Taxes? How Much Can You Write-Off?

What Counts As A Tax Deduction?

Business expenses and tax deductions are usually one and the same, however, it’s important to understand the distinctions to keep your business legally sound when it comes to the IRS. Understanding what can be classified as “ordinary and necessary” will help guide you toward proper tax preparation and save you time and money on the backend. Discover recent changes to the tax code and how it may impact your business’ write-offs.

What Can’t You Deduct On Your Taxes?

Deducting your clothes or massages? Not so fast. Just as important as understanding what you can write-off, it’s also key to know what is not reasonable. Unless these extra expenses are specific to your business and don’t benefit you when you aren’t engaged in business activity, then it’s best to play it safe, and not include these in your deductions.

How Much Can You Write-Off?

It’s not uncommon for new businesses to take losses in the first years. And, there really is no limit to what you can write-off, as long as it’s legitimate and you truly have more expenses than earnings.  Just be careful as the years go on because eventually your business will need to show a profit to appear reasonable to the IRS. 

Are you ready to start deducting expenses? 

LINKS MENTIONED

Biz Finance Survival Kit

https://andismiles.com/survivalkit/