A large number of business owners are leery of home office deductions, concerned that these tax write-offs are more likely to encourage an IRS audit. The IRS claims there is no meat to this. In any case, follow the rules and you should have no concerns. Active owners of a rental property may
Deductions within Startup Expenses
This write-up concentrates on deductible startup expenses for rental properties. You could be allowed to deduct a number of expenses incurred as you prepare the property for rental, but before renting it. NOTE: These startup expenses outlined within this write-up will not be the same types of
Travel Expense Deductions
Joe Taxpayer operates a retail SCUBA diving equipment business as a sole proprietor in Seattle. Joe knows he needs to be consistent in recording his business travel in order to deduct the mileage. He keeps a clipboard, chart and pen in his vehicle, and records his odometer readings every time he
How to Correctly Deduct Car and Truck Expense
When you use your car or truck for business, generally the expenses associated with that are deductible as business expenses. You can deduct the auto expenses for business when you are traveling from one work location to another, visiting customers, attending business meetings away from your
How to Correctly Deduct Self-Employed Retirement Plans
When you own your own business and you are a sole proprietor, you can set up a retirement plan for yourself and your employees if you have them. Once you have set up a retirement plan, the contrbutions that you make for yourself are deductible on your tax return. There are a few times of
How to Make Your Business Meals Deduction Audit-Proof
Nearly everyone enjoys eating, so an obvious and fun way to entertain your business prospects and to motivate your employees is with food. However, if your record keeping is inadequate or simply incorrect, you could run into trouble in an audit. There are several important requirements you must
Deductions for Charitable Contributions
On your personal form 1040 you may only deduct charitable contributions if you itemized your deductions (use Schedule A). In order for the contribution to be deductibe it must be made to a qualified charitable organization. When contributing cash you must maintain a record of the contribution.
Deducting Travel, Entertainment, Gifts, and Meals – overview
For business owners with questions about deducting expenses for travel, meals, entertainment, and gifts, here is a small overview. Generally meals and entertainment are deductible as long as they are ordinary and necessary expenses that are directly business related. An ordinary expense is one