Taxes

Deductions - Do you know working from home allows you to take a lot of added tax deductions? Things such as mileage, office supplies, business meals, health and medical expenses, etc. If you work from your home you can actually deduct a percentage of your utility bills as well.

Provided by: Michelle T. Beaulieu
Executive Assistant
ASAP Solutions

Listed below are some of the most common deductions:

Auto Expenses - The standard mileage deduction is 34.5 cents per mile.  If you choose not to use the standard mileage deduction, you may want to gather your receipts together for gas, insurance, repairs, car washes, etc.  You’ll be able to deduct these expenses for the same amount of usage that you use your vehicle for business.  For example, if you use your vehicle 80% of the time for business & 20% of the time for personal, you will be able to deduct 80% of the total amount of the expenses for a business deduction.  However, if you have parking garage fees or tolls, they are 100% deductible.

Provided by: Theresa A. Martinez
President
ASAP Solutions

Credit Card Interest - If you use your credit card for business expenses, you can deduct the interest you pay.  If you use the card exclusively for business expenses, the finance charges are 100% deductible.  If your card is used partially for business expenses& partially for personal expenses, your need to prorate your interest just as you do for your auto expenses.

Provided by: Theresa A. Martinez
President
ASAP Solutions

Education - Any type of education that you obtain, such as educational courses, conferences, & seminars, which pertains to your business, can be deducted.  You are even able to write-off magazines & books that provide occupational guidance.

Provided by: Theresa A. Martinez
President
ASAP Solutions

Equipment & Furnishings - Any purchased equipment &/or furniture can be expensed in full (up to $24,000 worth) or be depreciated over the IRS’ mandated 5 or 7 years.

Provided by: Theresa A. Martinez
President
ASAP Solutions

Home Office Expenses - You are able to deduct a percentage of your rent, mortgage interest, real estate taxes, insurance, utilities, repairs, & home improvements if you have a space in your home that is designated for conducting administrative tasks associated with your business.

Provided by: Theresa A. Martinez
President
ASAP Solutions

Independent Contractors - Any work completed by an independent contractor or consultant can be deducted as a contract labor expense.  Remember, if you pay them $600 or more, you should submit a 1099 form as well.

Provided by: Theresa A. Martinez
President
ASAP Solutions

Meals - Meals that you had with someone while discussing business, in town or out of town, can be deducted.  50% of business meals are deductible.  Keep receipts for your meals & make a note on the receipt regarding what you discussed & who you were with.

Provided by: Theresa A. Martinez
President
ASAP Solutions

Telephone - If you only have one phone in your home, you are not able to deduct the monthly service charges, but you are able to claim the cost of the individual business calls.  The cost of a second line or a cell phone can be deducted to the extent they were used for business.

Provided by: Theresa A. Martinez
President
ASAP Solutions

Travel - Lodging & transportation expenses you incurred while traveling for business (including conferences) are deductible.  Keep your receipts for things such as hotels, airfare, taxis, etc., and don’t forget to include tips!

Provided by: Theresa A. Martinez
President
ASAP Solutions