For a business expense to qualify as a deduction, it must meet two criteria required by the IRS: The expense must beordinaryandnecessary to the business. An expense is considered ordinary if it is common and accepted in your industry. An expense is considered necessary if it is helpful and ...
A mileage log book is a monthly or yearly record of your business-related travel that the IRS or your employer demands for tax deductions or reimbursement purposes. Regardless of your situation, the minimum information requirements are each business trip's miles, the year's total mileage, the ...
Too many write-offs Home office, travel, meals and vehicles are all legitimate business expenses. But when you, as a solo entrepreneur, claim 100% business use on your vehicle, that’s a red flag to the IRS. To keep things on the up-and-up, track your mileage and log the purpose ...
If air travel is an unavoidable expense for your small business, a deduction for the mileage you put on your car driving to and from the airport is ordinarily deductible. This is true even when employees do the driving and you reimburse them for the mileage put on their cars. There isn'...
Self-Employed Federal Income TaxesEstimated Taxes – Common QuestionsImportant tax dates for the self-employedMost self-employed taxpayers can deduct health insurance premiumsTop Tax Write-offs for the Self-Employed More in Self Employment Taxes 7 Ways Small Business Owners Can Reduce Their Tax Bil...
Business Travel.This can include your travel fees, meetings, conferences or special events that are for business purposes. Uncollected Debts.This can be unpaid invoices and fees from customers, clients and suppliers. Business Meals.You can deduct up to 50 percent of your meals if they involve bu...
Don't round up — and avoid high write-offs Another red flag for the IRS is when people estimate how much they've spent or received and round off the number, instead of reporting the exact amount. While "a certain amount of rounding is acceptable," writes Accounting Today, using the ex...
Consider whether every meal, travel expense, and stop for gas truly qualifies as a business deduction. Sole proprietors run a greater audit risk, but all small-business owners need to be mindful of their deductions. Pro Tip: Compare year-over-year deductions and make sure you’re consistent....