In the most basic sense, I see this process as 1. you make money, 2. you owe the government some of that, and 3. if you re-invest money you make in your business, you don’t have to pay the government. Of course, it’s good to pay some taxes. Tax write-offs are a good way to motivate yourself to re-invest in your business.
So for this special report, I went back to my 2016 taxes and looked through the best tax write-offs I had. Take a look at the list below and see how you might be able to use your money on yourself instead of on street construction and all that jazz the government does.
Dun-dun-dun-dun! And my biggest tax write-off as a small business owner of 2016 was…’Other Business Expenses’. Talk about vague. You see, the schedule c just didn’t have categories for all the kinds of things I purchased to support my business. What’s included in this broad category? The IRS explains what other business expenses are on a schedule c here (Check out the 3d paragraph). Some of my other business expenses included website hosting, a domain name email from Google, GoDaddy fees, and a voice recording app. These will be different for you. Just make sure you aren’t missing out on them!
Once you get past the challenge of starting your blog or business and you’re making some money, hiring people to help you out can really come in handy. When I was starting to earn more and therefore also owe more taxes, I hired a social media manager and boy was it worth it! There are tons of sites out there like UpWork.com where you can find great freelancers to help with your business.
The IRS describes this one as lawyers and accountants, but those are just examples. Intuit explained that any consultants to your business count as a write-off. I used this for my business coach and it was so worth it! You can also use it for professional association fees.
Did you get a new laptop that you use to blog or run your business on? That’s a pretty big write-off. I got an HP and a microphone so that clients can hear me really well on a Skype call. Business assets also include printers, phones, etc. Just be sure that you’re using it for business purposes and not personal.
I went on this incredible trip to Ireland and there was so much inspiration for my book there. By traveling with growing my business in mind, I was able to count this as a write-off. Going somewhere for a conference? That counts! Dream trip on the horizon? Find out how to get your business involved so you can write it off.
Need I say more? Moving to an apartment with a small dedicated office has changed my business. Even if your work space is part of your home, make sure to measure the space you use and add it on your schedule c.
These are only a handful of tax write-offs that you should consider. Want something more robust? Seek out a local accountant to help answer any questions that are specific to your business. Depending on the industry and type of business you’re running the write-offs will vary.