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Kerry@chooseabacus.com

Don’t miss the boat… and no, you can’t deduct that boat!

4 Sep 2020

Don’t miss the boat… and no, you can’t deduct that boat!

Tax deductions

The financial world tends to spend a lot of time discussing taxes- there’s a reason for that! The IRS tax code is complex and confusing for many business owners. To further complicate things, often financial experts disagree on its interpretation creating LOTS of room for confusions and mistakes. We recommend making sure you have a great tax expert on your team to help you navigate through the muddy waters of tax time. (We partner with an expert-OR we can provide a referral if you need one, etc)

In the meantime, we can provide some tips for you as you go about your daily business deciding what is (or isn’t) a tax deductible expense.

In our blog today, we want to share some of the most commonly missed tax deductions.

  1. Education & Conferences
    Did you go to a business conference? Take a course or coaching program? Buy an instructional book? Anything educational that is related to your field of work is tax deductible. Just be sure to keep a copy of the receipts and a description of the conference or workshops you attended in case there is ever a question of legitimacy.
  2. Subscriptions.
    Be sure you keep records of any expenses for cloud accounting software, productivity apps for your business, cloud storage apps, social media management tools, and online shopping carts. And don’t forget about analog subscriptions for trade or professional publications. All are deductible as long as they are used for your business.
    Cha-ching. Those expenses can add up and are 100% deductible!
  3. Internet and Cell Phone Expenses.
    A lot of business owners who have a home office forget to deduct a portion of their internet or cell phone for business use! You must base it on an estimate of % you use for business vs. personal and be reasonable.

Just make sure your deduction is consistent and reasonable and you’ll be all set and always use your CPA if you haven questions.

Next week we’ll share three more!

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