When we include our tax deductions, we must always remember the Big Four: Mortgage interest, State and
local income taxes, 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 employees could write off
certain miscellaneous itemized deductions on Schedule A before major tax law changes took effect.

If you free-lance, earn side income, or operate your own business, you may still deduct many expenses that
employees can no longer claim. Operating a business allows you to deduct ordinary and necessary expenses
used in running the business.

Internal Revenue Code Section 162 allows deductions for ordinary and necessary expenses paid or incurred in
carrying on a trade or business. Be sure to also check your state tax rules, since some states may allow
deductions that differ from federal rules.

Some business deductions are as follows:

• Tax preparation, consultation, investment, or planning fees related to the business
• Advertising, marketing, website creation, and maintenance fees
• Auto expenses (be sure to keep a logbook if the vehicle is used for both business and personal
  trips) No logbook, 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 new professional license)
• Equipment purchased, repaired, and maintained
• Health insurance premiums (includes Medicare insurance)
• Home office expenses (you can have more than one office)
• Legal, accounting, or other professional fees to manage or defend your income (professional
  athletes, for example, may deduct fines paid to their leagues as business-related expenses)
• License fees and renewals
• Office equipment and supplies
• Payroll and subcontractor expenses
• Printing, postage, and shipping costs
• Travel, transportation, and lodging expenses (many expenses here that you might not think of)
• Uniforms and laundry expenses
• Qualified Business Income deduction

Check with azmoneyguy or your tax advisor to see if your situation and circumstances allow you to deduct
business 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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