Post some good tax deductions....

[klrv6]

OK, the whole economy being down right now has got me thinking. I do some rather serious computer/network consulting on the side and am looking to get the most out of what I will get hit with on 1099s and such. I usually just get a check made out to myself for the payments. Maybe next year I will start having things written in the a business name. What can I legally/safely claim that I may be missing?

What do you guys claim for everyday things that most people would over look. I'm not looking to claim anything that may trigger a major tax audit, just want to make sure I am covering all my bases.


Thank$

 

[turbopete]

Some ideas

Are there any tax advantages to starting a small company, consulting firm or LLC for your computer work?
Can you deduct mileage, meals, cell phone or any other expenses related to the consulting?

 

[klrv6]

I think I can claim my mileage even without a company.

I have an s-corp that I have never done any work through, I think I'll get that going this year.

 

[GNBRETT]

Good will. You'll only need a reciept if you get audited...

 

[Phoneguy]

Lease your car to your business, Write off the lease. Your computer(laptop) is a business expense as is your printer and supplies. Home office? write off the space as an expense. Lunch, dinner, gifts to anyone can be expensed. Season tickets to sporting events, concerts etc, all entertainment expenses. Get yourself a tax accountant. Keep your records on Quickbooks and you can just drop off a disk. Your accountant can save you a ton of money, way more than they cost. Get yourself a bunch of large manilla envelopes and label them Jan, Feb, etc and put all receipts in the corresponding envelopes for your records with a total on the outside for each category, entertainment, food, lodging, car receipts, gas, repairs, mileage, office supplies, books, magazine subscriptions, anything that has to do with the business (or that could be made to look like it) :biggrin: HTH

Bryan

 

[imjoesnuffy]

Lots of little things that are often overlooked that are tax deductible.

Certain clothing items required for work
haircuts
dry cleaning
percentage of your cell phone bill
obviously you can deduct a portion of your mortgage if you work at home
professional reading materials-magazines, books, news papers
postage if it is work related and you arent compensated
mileage
as well as depreciation on the equipment you do use

Tax laws change every year, so an Accountant is a good investment. Some do it by line which can get pricey.

 

[klrv6]

My employer has begun pushing more expenses to the IT staff to pick up themselves. They only reimburse around 70% of most mileage so the rest we have to cover, cell phones, home phones, home internet connection and all related computers/networking needed.

I tried to talk one of my clients into doing my taxes this year. He ran his our tax service and was strapped for money. I told him I would let a $1400 invoice go if he did my taxes. He said he would rather just get paid than to barter...guess that's why he was tight on money.

 

[IEATV8S]

Might not be a tax deduction but right now is the time to be playing the stock market! It took a big hit this morning and was able to buy Alcoa at $11 a share, yesterday it was $12.12. This should be a week hold, at best, and could make you a $1 a share in that time! Just a heads up for anyone looking to make a little quick money!

Making money IS BETTER then taking a tax deduction, IMHO!

OH, BTW, if you just SIT on it, it's paying over 6% dividends! Sure beats a CD!

 

[klrv6]

Can I deduct for cloths if I only wear them to work? We have a business casual policy/requirement and my work cloths only get worn at work, not at home.

 

[Phoneguy]

Can I deduct for cloths if I only wear them to work? We have a business casual policy/requirement and my work cloths only get worn at work, not at home.

Absolutely, and the cleaning bill if you send them to be professionally cleaned.

Bryan

 

[Little6pack]

Why bother with all the aggrivation. Just take CA$H!

 

[TURBOTWIN2]

A statement and a question: clothing can be deducted only if it's something you can't wear away from work. A clown suit would qualify but a business suit wouldn't. Steel toed safety shoes would but wing tip dress shoes wouldn't.
How can a haircut be deductible? Just wondering.

 

[Grumpy]

How can a haircut be deductible? Just wondering.

you can't go looking like a bum working on your car in the garage I really don't think it would be worth doin (deductible) a haircut BUT it would for a woman !!! Thats big $$$$

 

[imjoesnuffy]

Haircuts

If your employment requires any sort of minimum grooming standards it is tax deductable. I've been claiming haircuts ever since I started itemizing. Obviously in the military there are grooming standards, so I claim them and I've never been audited.

 

[TURBOTWIN2]

If your employment requires any sort of minimum grooming standards it is tax deductable. I've been claiming haircuts ever since I started itemizing. Obviously in the military there are grooming standards, so I claim them and I've never been audited.

Well John, I hope you never get audited and by the way, thanks for your service over there in Afghanistanny. This is from the H&R Block website:

I am expected to maintain a well groomed appearance. Can I claim these expenses?
Expenditure on personal Grooming and haircuts are generally not deductible. There are exceptions for taxpayers involved in the performing arts field.

There was also a Tax Court ruling involving an Airline Pilot on this. They ruled that his haircuts were not deductible but keeping his shoes shined were OK. Obviously talent type people like a movie actor could deduct special type haircuts for that one particular movie but not his regular style after that. Nobody ever said the IRS logical or easy to deal with. You can deduct anything unless you get audited, which gives you about a 98% to 99% chance of being OK with this deduction. Good luck and keep the faith.