EP 29 - Can I Deduct That? 5 Tax Deductions You May Be Missing as an Entrepreneur
In today's episode, I cover one of the most requested topics that I get. It's no surprise that taxes are a hot topic because they can be difficult and hard to understand plus who doesn't want to get as much benefit as possible?! While there are many tax deductions to consider, I am filling you in on FIVE that you probably can take advantage of and may not know about. 1) Mileage: Keep track of the business miles throughout the year. Make sure that you are keeping a good written record of when & where, calculating the specific miles driven for business purposes. At tax time, pass this along to your tax preparer and they will most likely give you the standard mileage rate deduction for these miles. 2) Cell phone: Assuming you are not using your cell phone for 100% business use, you can deduct part of your cell phone bill. The easiest way to do this? Take a week or up to a month and determine how many business minutes you used vs. personal. Business minutes/Total minutes=Business percentage use. Now at the end of the year take that percentage and multiply it by the total amount spent on your cell phone bill. This is the amount that you can deduct for your business. 3) Software or subscriptions: Any software such as QuickBooks, Microsoft Office, Zoom, etc can be deducted if used for business purposes. 4) Business Coaching or Continuing Education: Whether you are a new or seasoned entrepreneur, you may be seeking help from someone or something to guide you along in your business. Assuming it relates to your business, you can deduct these expenses. 5) Home Office: Do you have a separate area of your home designated strictly for business? Make sure you keep track of any of the furniture, décor or office equipment that you purchase. Also, you can use the square footage of your office space to determine your deduction from your mortgage or rent, utilities and RE tax. There are so many things in your office that may benefit your business tax return. Make sure you check in with your CPA or tax preparer! As always, make sure you are paying for your business expenses out of your separate business bank account. This will help you keep track of all your possible business deductions throughout the year. Please keep in mind that I am not a CPA and do not consider myself a tax professional. I am an accountant with basic tax knowledge and hope to pass what information I know to you. Always consult with your personal tax preparer to confirm! Let's connect! Business Minded Mama Facebook Community Instagram: @stephanieparenza