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As you can imagine, I get this question A LOT.  However, there is an important follow up question to this…which you really need to understand.  The next question is this: How do I deduct it, and where should I deduct it?  Am I telling you that certain items don’t necessarily have to go in one place?  Yes.  Do certain deductions get 100% deductibility in one place and not 100% in another?  Yes.  So, though it is important that you thoroughly go through a checklist for what expenses might qualify to be deducted on your taxes, you also need to construct your tax return to the maximum benefit.  Sometimes tax software gets this right.  But, sometimes it doesn’t.  You see, there is computer code that is determining where to put deductions for you.  The coding can’t possibly think through and analyze the entire return from a big picture standpoint and then construct it in the best way possible for you.  Honestly, though, that technology is probably 5 years away.  For now, we will still have to think for ourselves!

The 75 most Common Deductions for Taxes

Accounting fees
Advertising
Amortization
Auto expenses
Bad debts that you cannot collect
Banking fees
Board meetings
Building repairs and maintenance
Business association membership dues
Business travel
Cafeteria health-insurance plan (requires plan)
Charitable deductions made for a business purpose
Cleaning/janitorial services
Collection Expenses
Commissions to outside parties
Computers and tech supplies
Consulting fees
Continuing education for yourself to maintain licensing and improve skills.
Conventions and trade shows
Costs of goods sold
Credit card convenience fees
Depreciation
Dining during business travel
Discounts to customers
Education and training for employees (new)
Employee wages
Entertainment for customers and clients
Equipment
Equipment repairs
Exhibits for publicity
Family members’ wages
Franchise fees (new)
Freight or shipping costs
Furniture or fixtures
Gifts for customers ($25 deduction limit for each)
Group insurance (if qualifying)
Health insurance
Home office
Interest
Internet hosting and services
Investment advice and fees
Legal fees
License fees
Losses due to theft
Management fees
Materials
Maintenance
Medical expenses (with plan)
Mortgage interest on business property
Moving
Newspapers and magazines
Office supplies and expenses
Outside services
Payroll taxes for employees, including Social Security, Medicare taxes and unemployment taxes
Parking and tolls
Pension plans
Postage
Publicity
Prizes for contests
Real estate-related expenses
Rebates on sales
Rent
Research and development
Retirement plans
Royalties
Safe-deposit box
Safe
Software and online services
Storage rental
Subcontractors
Taxes
Telephone
Utilities
Website design
Workers’ compensation insurance

 

 

photo credit – www.stockmonkeys.com

 

Dan Lucas
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