Hey Business Owners!–The Top 5 Forgotten Expenses
So, I am constantly getting asked about what business owners can deduct. And, aside from the obvious, there are always expenses that folks forget. Here are my top 5:
- Mileage. to and from client locations, business meetings, networking events. These all add up. In 2018, it’s back up to 54.5 cents a mile. RACK UP! One caveat: It does not include miles to and from your office or work location commute. (Gas is not deductible, unless you have your vehicle on your books and you chose the actual vs. the standard mileage method).
- CELL PHONE.How much of your cell phone do you use for business? Is it 50%, 75%, more, less? Take that percentage and multiply it by your monthly bill and enter that in as an expense onto your books.
- MEALS. Business and networking meals are still deductible at 50%. (Just not entertainment anymore). Save your receipts and document who you were with!
- START UP COSTS. What are the items or services you bought before your business went live? Did you set up an LLC? Did you contribute your personal laptop? These are items considered as Owner Contributions and therefore expenses on your books
- HOME OFFICE.If you work from home, this is a big one most forget…In simplicity, add up all of your utility costs, HOA dues, and repairs & maintenance costs for the year. Take those amounts and multiply it by the fraction of the square feet of your office space to the total of the home.
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