For every self-employed professional, there is one day of the year that seems to put a black cloud over everything else, tax day. That one day in April is hard on us all, but it is especially difficult when you are looking at all of that self-employment tax. If you read our previous blog, then you already know that there are many business expenses that you can deduct from your taxes, but unfortunately we only had time to go over a few. The following is a list of the other top deductibles from our Maryland tax lawyer:
- Interest- The interest that you accrue from a business loan is actually tax deductible! If you make purchases using your business credit card that you get interest on, then that interest is also tax deductible.
- Automobile- When you travel for work in your vehicle, a portion of your mileage is tax deductible. You will want to keep in mind that transportation expenses are an audit flag for the IRS, so make sure that you only claim actual expenses and you keep detailed records.
- Meals- Are you constantly taking your clients out for nice meals? You can deduct 50% of these costs on your taxes. This is a common way to cheat the system, so don’t forget to take meticulous notes and keep your records.
- Travel- If you travel outside of your city limits and stay overnight, you can deduct travel expenses from your taxes. In order for your trip to be considered as an actual business trip, you need to have a specific business purpose planned prior to leaving your home.