List of Business Deductions

Today TaxMama hears from Sylvia in Laguna Hills, CA who asks, “Is there a list of deductions we can take being self employed? Any website?”

Dear Sylvia,

Well, sure!

The master list of deductions you may use is on IRS Schedule C, the form on which you report your Business Profit and Loss. http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

Look at the two pages and read the instructions, and that will give you a good starting point.
http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Another list of Office in Home Deductions can be found on IRS Form 8829, the Office in Home form.
http://www.irs.gov/pub/irs-pdf/f8829.pdf

Again, be sure to read the instructions (hint, just change the letter ‘f’ before the form number in the link to an ‘i’ – and it takes you to the instructions forms).

IRS Publication 334 – the Tax Guide for Small Business http://www.irs.gov/publications/p334/index.html
will give you a lot of information – and lead you to other related publications that provide more in-depth information about an array of deductions.

Once you’ve learned the what, you’re certainly welcome to read Small Business Taxes Made Easy
http://www.taxmama.com/AskTaxMama/book/ to develop a strategy for ‘how’, for tracking and using the allowable deductions without getting into trouble with IRS.

As it happens, that book will teach you about a lot more than just what to deduct and how – it will also teach you how to run and market and build your business. In fact, you can read the Table of Contents here.
I just put it on the site for you. http://www.taxmama.com/AskTaxMama/book/table_of_contents.pdf

And remember, you’ll find answers to questions about business expenses and all kinds of tax issues, free. Where? Where else? At TaxMama.com

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