When we include our tax deductions, we must always remember the Big Four: Mortgage interest, State income taxes withheld or paid, Real estate taxes and Charitable contributions. John and Edith, a couple starting a business, had this in mind and they were also aware that 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) suspends (takes away) Miscellaneous Expense deductions, but there is still a potential for getting tax deductions for Miscellaneous Expenses. The couple knows this, because they sought assistance from their tax professional.
If you free-lance or earn side work 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 earn non-employee (self-employed) income from free-lance or 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 for business
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)
Uniforms and laundry expenses
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