We work, in large part, to earn money. However, it sometimes costs us money to do our work! The IRS recognizes this and offers several tax deduction options for business professionals to offset the impact of those costs. Read on to find out about valuable tax deductions you can take for business-related expenses!
What Can I Deduct?
While every situation is different, the core list of deductible expenses for business professionals includes:
- Continuing Education
- Professional Fees and Dues
- Uniforms and Upkeep Expenses
- Auto Travel
- Out-of-Town Travel
- Communication Expenses
- Equipment and Supplies
You should keep track of these costs throughout the year so you can take the appropriate deductions when you file your taxes each spring!
What Is the Fine Print?
If you deduct business expenses on your taxes, you do need to make sure you are only deducting eligible expenses. As with most things tax-related, there is some fine print to keep in mind!
While the rules for each category differ, the main parameter is that any expenses you deduct must be directly related to your work. This might seem self-evident, but this distinction is particularly important to keep in mind when you have business expenses that cross over into personal expenses.
If you take a trip, for example, you can only deduct the cost of travel if the main purpose of the journey is business related. If you buy clothes for work, you can deduct the cost of that purchase only if the items are exclusively for wear at work (usually meaning that they have a company logo or other element differentiating them from street-wear).
If you have questions about what you can and cannot deduct as a business expense, contact the tax experts at Taxation Solutions, Inc. today! We are here to help folks in Raleigh and the surrounding area make informed tax decisions. Contact our team to make the most of your business tax deductions this tax season!