Tax Write-Off List for the Self-Employed

If you are self-employed, then it is never to early to start compiling your tax write off list for the year. A write off is a confusing statement, as it is often used in terms of things being lost beyond repair, such as a car being written-off. It is more complicated when it comes to working out what you can claim on your tax write-off list.

Items that can be Written-off

You can write off anything which involves an expense that is 'ordinary and Necessary'. Ordinary expense is that which you would incur in the course of your profession, and Necessary are those things which are 'appropriate' to your line of work. For most small business people, the main source of write-offs is in the home office. If you have a qualifying area of space, you could write-off some of the mortgage, and also some of your home owner's bills. You can also write off old equipment that has failed.

Other Write-offs

You can also write off any business trips, including 50 percent of the costs of meals and entertainment. You could also write off gas usage, although you cannot write off commuting charges. Any savings and retirement accounts can also be written off, up to the sum of $5,000.

blog comments powered by Disqus