Self-Employment and Taxes – Do You Maximize Your Deductions?

Comments

1. Dorothy Winchell says:

   March 24, 2010 at 9:22 am

   I’m a tax preparer by day, so I have a few additions:

   The IRS allows you to deduct 50% of the cost of meals, not the full 100%.

   Another expense that can really add up is mileage expense. When you start your business, right from the beginning you need to decide whether you will track business mileage or actual expenses. We usually recommend that you track your mileage; this year the IRS is allowing a 55 cent/mile deduction for travel expenses. Unless you have a vehicle that is strictly used for business (in which case it is easy to track expenses), we find that, dollarwise, it’s usually more adventageous to take a mileage expense over the course of your business. Even if you do decide to take actual expenses, you need to track your mileage anyway because you are only allowed the expenses attributed to business mileage. Be aware that once you choose one over the other, you need to stick with that method as long as you’re using the same vehicle.
2. Recycling is for Lovers, InvadeNOLA and other Friday Links says:

   March 26, 2010 at 3:32 pm

   [...] finding support in your community and can you really work 80 hours a week, every week? @ craftMBASelf-Employment and Taxes – Do You Maximize Your Deductions? and Expand Your Opportunities by Thinking “Outside the Box” @ [...]

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