Comments on: Self-Employment and Taxes – Do You Maximize Your Deductions? http://indiebizchicks.com/wp/self-employment-and-taxes-%e2%80%93-do-you-maximize-your-deductions/ For Women Who'd Rather Work For Themselves, Than Work For The Man Tue, 15 May 2012 19:24:28 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Recycling is for Lovers, InvadeNOLA and other Friday Links http://indiebizchicks.com/wp/self-employment-and-taxes-%e2%80%93-do-you-maximize-your-deductions/comment-page-1/#comment-11310 Recycling is for Lovers, InvadeNOLA and other Friday Links Fri, 26 Mar 2010 19:32:56 +0000 http://indiebizchicks.com/wp/?p=1761#comment-11310 [...] 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” @ [...] [...] 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” @ [...]

]]> By: Dorothy Winchell http://indiebizchicks.com/wp/self-employment-and-taxes-%e2%80%93-do-you-maximize-your-deductions/comment-page-1/#comment-11264 Dorothy Winchell Wed, 24 Mar 2010 13:22:20 +0000 http://indiebizchicks.com/wp/?p=1761#comment-11264 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. 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.

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