Little Trick to Write Off Miscellaneous Expenses

When we include our tax deductions, we can always remember the big four:  Mortgage interest, state income taxes withheld or paid, real estate taxes, and charitable contributions.

2017 was the last year to be able to write off Miscellaneous Expenses on Schedule A. The Tax Cut and Jobs Act of 2018 (TCJA) no longer allows them, but there is still a potential for getting tax deductions for Miscellaneous Expenses.

If you free-lance or have your own business, you can still write off many items that are now lost for employees. Having your own business allows you to write off any expense that is used for the business. Try to get non-employee (self-employed) income for side work and you can write off many if not all the expenses listed below.

Internal Revenue Section 162 allows for any expense of operating a business that is reasonable and ordinary. Be sure to check with your state rules, where they might be allowed, too.

Some (BUT NOT ALL) business deductions are as follows:

• Tax Preparation, Consultation, investment, or planning fees

• Advertising, marketing, website creation and maintenance fees

• Auto expenses (be sure to keep a log book, if you use the vehicle for both business and personal trips) No log book, No deduction!

• Bank Fees and credit card processing fees

• Communication Expenses (phones, internet, data plans)

• Dues, Professional organizations, and groups

• Education to improve your existing knowledge in a business (Not allowed if it prepares you for a new career or job)

• Equipment purchased or repaired and maintained

• Home Office expenses (you can have more than one office)

• Legal, accounting, or other professional fees to manage or defend your income (professional athletes get to deduct fines they pay to their leagues for misconduct.)

• License Fees and renewals

• Office equipment and supplies

• Payroll and sub-contractor expenses

• Printing, postage, and shipping costs

• Travel, transportation, and lodging expenses (many expenses here that you wouldn’t think of) BE SURE TO SEE YOUR TAX PREPARER FOR THIS!!

• Uniforms and laundry expenses

Call today, don’t delay! See how this affects you. We can be reached at 602-264-9331 and on all social media under azmoneyguy.

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