Do you wonder what can you write off on your taxes? There are indeed some items you can write-off on your taxes if you have a business. We just need to determine what these are so we can reduce our taxes. In this article, we give you some examples of things you can use to lower your taxes.
5 Things You Can Write-Off From Your Taxes
Deductions or write-offs can help lower your taxes – you just need to know what they are. Here are 5 things that you might not know are write-offs:
1. Food and Leisure
Write off meals you have in relation to your business. You can consider professional meals related to your business such as taking out your clients for a meal. Leisure, meanwhile, refers to taking out any person related to your business out for some activity.
- Only 50% of meals and leisure are deductible.
- Dinner with clients or colleagues count.
- Meals while traveling for business count.
2. Home Office
Home office expenses can be a write-off. This refers to any expenses related to your home office set-up. A home office should be a designated, roomed area in your house where you do business.
- The home office should be used daily.
- It can’t be a space that’s also for personal use like a guest room.
- Talk to a CPA about calculating home office write-offs.
Teachers will get to keep the $250 tax write-off for spending their own money on classroom supplies. Graduate students’ tuition waivers will remain tax-free in the final version of the House-Senate tax bill. @CTULocal1https://t.co/e32GRlzVy8
— arlenegloria (@arlenegloria) December 26, 2017
Any material used to further business can be written off. Business-related learning costs are considered deductible on your taxes. Some common tax deductions are:
- workshops, training, and online courses;
- seminars, conventions, and summits;
- books, ebooks, audio books and similar subscriptions; and
- newspapers, magazines, and reference materials.
4. Phone Bills
Business is done over the phone and can be written off. You can use business-related phone expenses as deductions to your taxes. It is advisable to dedicate a phone for business purposes so as not to confuse it with your personal usage.
- Track business phone usage.
- Track percentage of business and personal use.
- Calculate the percentage from your phone bill.
- Figure out the amount to write off.
A technology used for business can be written-off. Any program or software cost related to your business can be tax deductible.
- Accounting and Inventory Management Software.
- CRM Apps and software.
Don’t forget to download, save, or share this handy infographic for reference:
Taxes can sometimes be a burden on your finances. However, knowing some tax procedures can help you lower your taxes. It is still advisable to seek the help of a tax professional to ease your burdens on your taxes.
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Do you have other suggestions on what you can use to write-off taxes? Please let us know your thoughts by leaving a comment below.