Are these three costs getting a second look before year-end?
For business owners and self-employed professionals. Eligibility depends on your situation.
Qualifying supplies used to operate your assisted-living business may be deductible. Track care, cleaning and office supplies separately from personal purchases, resale inventory and equipment that may need depreciation.
Group receipts by care supplies, cleaning supplies and office supplies; keep the business purpose and separate unused stock.
Payments to properly classified independent contractors for business services may be deductible. Caregivers are not automatically contractors: review employee-versus-contractor rules, payroll duties and required information returns. Do not deduct your own unpaid labor.
Keep service agreements, invoices and payment records. Review worker status before treating caregiver or relief-staff pay as contract labor.
Self-employed business owners may qualify for a home-office deduction when the space meets IRS business-use rules, generally including regular and exclusive use. Employees, including S-corp owner-employees, should review eligible employer reimbursements under an accountable plan instead of assuming a personal home-office deduction. Working from home alone does not qualify.
Record the workspace size, business use and costs. For reimbursements, document eligible business expenses, account to the employer and return any excess on time.
Business expenses must be ordinary and necessary. Keep receipts and the business purpose; separate personal use and reimbursements. Inventory and long-term assets can have different rules. General education, not individual tax advice.
Book a free 15-minute year-end tax check with Louisa, by phone.
Book your free 15-minute tax check →Or call or text 281-656-9666.