Ugh, tax season.
If you are like me, you vow every year to get your tax information submitted to your tax professional in a timely and organized manner. If you are like me, what usually happens is procrastination and some amount of confusion when it comes to compiling the information. Amazingly, I have already started compiling my 2016 taxes! During this process I found a few things that I have overlooked in the last few years, and thought I would share them.
(Before we get started, I should tell you that I am not a tax professional and this is not legal advise. You should always consult a licensed tax professional if you have any questions or concerns about your particular situation.)
A Few Tips
- The IRS requires business expenses to be “ordinary and necessary”. So, if you are thinking of a large wine refrigerator for your office, you may want to reconsider.
- Document everything and keep receipts. Everyone knows this, hardly anyone does it. The good news is there are a lot of apps and software available to make this process a little easier. You can track expenses using an accounting program such as Quickbooks, or try an expense tracking software like Shoeboxed.com.
- Business clothing with logos on them can be taken as an expense.
- We all know that you can expense mileage, but did you know that you can expense taxi and Uber fares? By the way, you can’t deduct parking or traffic tickets!
- Also, you can deduct the cost to wash your business vehicle.
- There are rules about how to expense business travel, especially if you’ve mixed the trip with pleasure (talk to your tax professional). One deduction I’ve missed in the past is the cost of baggage fees.
Even if you don’t qualify to deduct your home office space, you may still be able to deduct equipment and supplies that you use to do business while at home (printer, etc.).- Of course office supplies can be deducted, but did you know that office decor can, too?
- When you are deducting your professional continuing education costs, don’t forget about any online courses or books that you have purchased.
- ATM fees, credit card fees, and other bank charges from your business accounts can be deducted. These things add up!
Preston Group is here to guide our clients through the process of completing a real estate transaction. We have over 10 years experience in the Las Vegas real estate market, and do a majority of our business through referral and return business. We also happily accept commercial real estate referrals from other local real estate agents. Call Shawn M. Preston at 702.350.2289.
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