Are these three costs getting a second look before year-end?
For business owners and self-employed professionals. Eligibility depends on your situation.
Qualifying trips between workplaces, to clients or to job sites may be deductible. Use eligible business mileage or the business share of actual vehicle costs, not both. Regular commuting is generally not deductible; avoid deducting a cost already reimbursed.
Log the date, destination, business purpose and miles for each trip. Keep parking and toll receipts, and track total annual vehicle miles.
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.
Ordinary and necessary costs to promote your business, such as business ads, website promotion and printed marketing materials, may be deductible. Separate personal costs, political contributions and other nondeductible spending.
Match each advertising invoice to a campaign or business purpose. Keep records for digital ads, print materials and website promotion.
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.