It’s tough to make a buck when you are self-employed, but you can find plenty of ways to cut your tax bill through legitimate deductions. Before you start waving a white flag of surrender, don’t let the specter of an audit keep you from keeping what’s rightfully yours. When the going gets tough, the tough get going! Be ready to defend those legitimate tax deductions from the tax man. Now whip out that calculator and hit the trenches!
Do you have a home office? The total you may legitimately deduct will depend on the size of your office space. So make it bigger! Spread out and enjoy your new digs, because you can write it off!
There’s more deductions! Meals and entertainment expenses related to your business operation are deductible, too! Keep meticulous records (Don’t worry — it’s as easy as swiping a credit card) because this deduction can be a red flag for IRS auditors. And, remember, when those auditors start waving red flags, its time to fight back. Flood ‘em with receipts. If you’re on top of your game, you can out-maneuver those flag wavers every time with your legitimate tax deductions, because you kept records of every expense, even while on the fly!
Love to eat out? Don’t let the fear of the IRS keep you from the gravy line. While it’s true tax deductions for entertainment expenses must be “both ordinary and necessary in carrying on a trade or business,” there’s good news. Every time you swipe a credit card for a business expense that’s one more deduction in your favor. Take that, Mr. IRS auditor! And here’s another receipt and another, and another one!
Internet service and phone expenses are also deductible and those service fees should be apportioned to the amount of time the service is used for business purposes. So talk up a storm with business associates! The minutes may not be free, but you can write ‘em all off!
Half of meals and entertainment expenses are also deductible, but only if your trip requires an overnight stay. So, here’s another great idea: Book a room. You can enjoy the hotel pool while you brainstorm new ideas to take your business to the next level and you guessed it: You can write it off!
Now admit it: Isn’t tallying up those tax deductions serious fun?