Running your own business as a self-made entrepreneur gives you the ability to make business decisions based on your own budget and priorities. You can decide where you’d like to work, even if it’s at home in your own office space, what supplies you need and when and where you need to travel for business purposes. And there’s much more than freedom that comes with self-employment: you may be able to deduct these self-employed business expenses and save money when you file your taxes.
Home Office. Having a space in your home set up as an office not only saves on office rent and allows for personal space while working on important business-related projects, but you are also able to save money later on.
If you have a dedicated space used only for business in your home, you can deduct a portion of home expenses, including rent, mortgage interest, utilities and property taxes based on the square footage of your office used for your business.
Equipment and Supplies. With all this flexibility of being able to work at home, purchasing office supplies, software, and subscriptions fall under your responsibility and can even come with additional unexpected expenses. Did you know that your desk, chair, and even your printer can be deducted on your tax return?
Also, if you purchased a computer or other equipment, like a tablet or cell phone for your business, you can take a deduction in the year you purchase it if it was used exclusively for business. Up to $500,000 worth of equipment may be eligible for immediate deduction in the tax year you bought it.
Business Travel. For the self-employed, training and education can come at a hefty price, especially if it’s specifically for your own business. If you traveled for a conference, you may be able to deduct your travel expenses as long as your travel was directly related to the business purpose and you were not reimbursed. This may include airfare, mileage, and hotel expenses.
Don’t forget about the fee you paid for the conference! And, if you rent a car when you arrive to your destination, the expense is tax deductible as long as the car is used exclusively for business. You can also deduct business related use of your car – like mileage – but the IRS requires you keep records.
We get it, being self-employed is a balancing act, but it is also fulfilling and worthwhile to be your own boss. Indemnity Tax Services can help ease the stress and allow you to focus on your business.
Using some of these tax deductions will help you save big and feel good about running your own business. What are some unique and surprising tax deductions that you’ve been able to take advantage of this year?
Don’t worry about knowing these tax deductions. Indemnity Tax Services will help you organize and separate your business and personal expenses and uncover business deductions you didn’t know were possible.