If you’re a self-starter who enjoys promoting your own ideas and taking responsibility for generating customers and income, you’re probably well suited to self-employment. In addition to providing independence and freedom, owning your own business offers tax savings. Here are just a few:
- Home office. Calculate the percentage of your home that you use exclusively for business. Then deduct that percentage of your rent or mortgage payment, property taxes, utilities, insurance, etc.
- Office supplies. You can deduct printer ink, paper, file folders, etc.
- Communications. Deduct the percentage of your phone and Internet bills that’s exclusively for business use.
- If you discuss business with a client during a meal, golf game or other entertainment, you can generally deduct 50% of the cost.
- Entertainment. If you discuss business with a client during a meal, golf game or other entertainment, you can generally deduct 50% of the cost.
- Travel. If you’re traveling for a specific business purpose, you can often deduct things like meals, accommodation, cabs, airfare, etc.
- Vehicle. Again, calculate the percentage of your vehicle use that is solely for business. Then deduct that percentage of gas, maintenance, insurance, etc.
- Publications. You can deduct the cost of magazines, books, websites, etc. that relate directly to your business.
- Education. Classes, seminars and other educational opportunities are deductible if they improve your skills for your existing business.
If you’d like more advice on the tax advantages of self-employment, give us a call.
403 990 4817