Posted on by Tiffany LaToi

The Love & Hate Season has finally arrived…. Tax Season lol!

If you are a new business owner, existing business owner or even thinking about starting a business then be sure to keep reading!

One of the great things about being self-employed is we get some amazing tax write-offs for our businesses.  I want to share a few with you in this blog however if you click the link below I created a FREE Tax Cheat Sheet for you to download with a ton more!

 

DISCLAIMER (yall know I love my disclaimers lol)

Every business is different and what you can write off varies based on YOUR business. Always consult a tax professional before doing your taxes. This blog post is for educational purposes only and not intended to be tax, finance, or legal advice! 

 

These write-offs will help lower our tax bills, while also keeping our businesses profitable!

 

Education & Classes

I pride myself on learning new skills.  I absolutely love online classes and eBooks that will help me take my business to the next level.  Every year I invest in both expensive and inexpensive educational opportunities. 

The great thing is I can write all of them off!!!

Of course, the education has to connect to your business somehow. It doesn’t have to just be in your industry, but it does have to have something to do with your business.  So if you are a hairstylist and take a social media class, that would count as well.

Examples of Educational Write-Offs

-Online courses

-Workshops

-Conferences

-Books & eBooks (yes my eBooks you buy can be written off)

-Courses

-In-person training

-Reference material (magazines, journals, newspapers)

Be sure to check out my current eBooks

100 Top Apps & Tools To Build Your Business

Step-by-Step Guide on How To Create a Profitable Business Plan

90 Days of Instagram Post Ideas Planned Out

How To Sell Your Knowledge

The Daily Profits Bundle

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Cell Phone

I have no idea why, but for some reason, business owners always forget to write off their cell phone bills! 

I use my cell phone for social media marketing, checking and responding to emails, scheduling clients and so much more! 

How much of your cell phone bill can you write off?

That depends on you and your business, but here’s a tip: Don’t write off 100% unless you have a cell phone dedicated exclusively to business use…. But again check with a tax professional. 

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Home Office

I currently work from home and I LOVE my home office write-offs LOL. 

So how does the IRS define a home office?  “Exclusive and regular place where you do business”

Exclusive means it has to be somewhere that is specifically for business use. That means it cannot be somewhere in your home that is used personally as well. If you work on your dining room table, couch, or on a desk in your living room it doesn’t count.  You should have a room in your home that is set up for business use.

In addition, the amount you can write off depends on the square footage of your home office in relation to the square footage of your entire home. PLEASE talk to a CPA about calculating this number, THIS IS NOT ONE OF THOSE DIY WRITE OFFS! LOL

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Gifts

You can actually write off being “thoughtful” LOL  how cool is that!

You can write off gifts if you give something to someone that has to do with your business.

Examples of Gift Write-offs

-Gifts to your clients or customers as a thank you for referrals

-Gifts to clients or customers for special occasions

-Gifts to your freelancers that you hire as a token of your appreciation

BUT please keep in mind that you are only allowed to write off $25 per person per year in gifts.  So if you buy a gift for $75.00 you can only write off $25 of that gift.  Don’t go overboard.

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Travel

I write off business trips all the time but what I really love is writing off travel within my own city!

The deal with local travel is that you have to be traveling to somewhere business related. 

Examples of Travel Write-offs:

-Uber

-Lyft

-Taxi

-Public Transportation

-Mileage

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Meals

Lord knows I love eating out, so this is one of my favorite write-offs!!!!

You can write off a meals if you eat with another person where you pay for yourself and the other person.  You can however write off a meal by yourself if you are traveling for work.

Examples of Meal Write-offs:

-Taking a client out to eat

-Eating out with someone you hired or plan to hire

-Eating out with someone related to your industry

-A business meeting

Please consult a professional to determine how much of the meal can be written off. 

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Business Software

OMG I’m a software junky so this is one of my favorite write-offs as well!  Obviously, the software you write off has to be related to your business…. But get this.. you can also write off apps that you use for your business as well. 

iTunes is one of the biggest culprits for missed deductions because most people still have their personal card linked to their account. If you are one of these people and regularly buy business software and apps, consider changing the card on file to your business card.

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FREE TAX WRITE-OFF CHEAT-SHEET

The Tax Cheat Sheet that will save you money!

CLICK HERE TO DOWNLOAD YOUR FREE TAX WRITE-OFF CHEAT SHEET!

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Once again, this blog post is for educational purposes only and not intended to be tax, finance, or legal advice!  Please consult a professional.