There are a few things that we’re all about here at VBO Nation: increasing personal freedom, reducing stress, and maximizing earnings.
That’s why we’ve taken the onus to let you in on some truly valuable information.
Tax season is here, and if this is your first rodeo as a virtual business owner, you may not know what your options are when it comes to your write offs.
There’s money you can save hiding in plain sight, and you might miss it if you don’t know what to look for.
But no need to fear, we’ve always got your back at VBO Nation.
Here are the top tax write offs to take advantage of during the 2018 filing season.
Home Office, Utilities & Insurance
If your home is the principal and regular place of work you can deduct a portion of your home expenses (woohoo!); direct expenses, like renovating a home office, and indirect expenses, like a percentage of rent or mortgage interests, are included.
Divide the total square footage of your home by the square footage of your office space to figure out the percentage of direct and indirect expenses you can deduct.
You can also deduct certain utilities like electricity, internet, and cell phone charges.
Insurance costs related to your business like flood insurance, cyber liability coverage, and business continuation insurance are also fully deductible.
Office Supplies and Expenses
If you’re not saving receipts for conventional office supplies, you should be!
Bought a headset for your computer, or a file cabinet for your home office?
That’s all deductible.
So are shipping, postage and delivery expenses.
If mail-order is essential to your work from home business, make sure you’re keeping track of these costs.
Any software needed to run your virtual business is fully deductible.
So good news, you can write off those costly Adobe subscriptions!
You can deduct education costs if what you learned helped you shore up your job skills.
So seminars, classes, and workshops that were related to your work from home business are a yes.
Golf and guitar lessons are probably a no, LOL!
Advertising and Marketing
From business cards to billboards, flyers to Facebook ads and everything in between, expenses tied to promoting your virtual business are fully deductible.
Legal and Professional Fees
If you have to hire an accountant, consultant or an attorney for your business, you can deduct their services.
Just ensure that the expenses are both necessary and reasonable by referring to the right IRS publication, or consult a tax professional.
You can deduct taxes on licenses, regulatory fees, and taxes on real estate and personal property, too.
The Bad Debt write off is there to help you recover on missed money.
Say you never received payment for an advance you gave someone, or if you didn’t receive items you purchased.
That’s where this write off comes into play.
If you sell goods as a part of your work from home business, you can deduct the cost of any items you haven’t yet received payment for.
A little goodwill goes a long way.
Donating money, property or supplies to a 501 (c) 3 nonprofit is a recognized write off.
You can check the IRS’ charitable organizations search to ensure that the organization you donate to qualifies for the write off.
Now that you know about these nine write-offs, you’re all the more prepared for you 2018 tax filings.
And you’re ready for next year, too.
Be sure to check out our blog on the top five tax prep resources to make this filing season a breeze.