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What are you writing off for your online business?

by Rien
8 replies
Hi all, I am in the midst of doing my taxes and wanted to see what every one else is writing off. I have included things such as supplies, software, subscriptions, home office space, etc. Anyone have any other things they would add?
#business #online #writing
  • Profile picture of the author Private Label Ebook Shop
    Not sure where you are located, but here in Canada, with our home office space we can also write off portions of heat, electricity, etc. This year I am even writing off the money we spent to renovate the bathroom accessible from the office.

    If you travel at all you can claim expenses there. I have even used vehicle maintenance and insurance as write offs in previous years.
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    Private Label Rights Ebook Store
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    • Profile picture of the author Jeremy Morgan
      Fuel
      rent
      office supplies
      hosting
      domain fees
      advertising


      Anything you have to spend to keep the business going is something to consider writing off. The idea is you aren't spending money on yourself, but spending it to keep the business going so you shouldn't be taxed on it.

      If you have a good accountant or can do it well yourself you can write off quite a bit. Just remember to be really honest about it, and keep in mind the more stuff you write off, the more chances you'll be audited. But if you're honest and above board with everything you'll be fine.
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      Jeremy Morgan, Software Developer / SEO
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      • Profile picture of the author dljmktg1
        There's some great information on the IRS website. Just go to Internal Revenue Service and do a search for "schedule c". The instructions, which can be downloaded (free) will contain lots of information on what expenses can be claimed for a sole proprietorship. Also search for "office in home" for information about your home office.

        Be aware the IRS tends to pay more attention to some things that to others. One of these things is home office expenses, because of the potential for fraud. The home office area does not have to be an enclosed room anymore; it can just be a certain area of the home. But, the home office area must be used exclusively for business. The IRS does not accept 99% business use as exclusive - it must actually be 100% business use.

        Of course, this applies to US taxes only.

        Lastly, as Jeremy said, just be honest. If questions arise, you'll be OK.


        Dan
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  • Profile picture of the author J23
    Outsourcing, PPC, internet and electric bill (probably can't do the whole thing), software, domains, hosting, auto-responder
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  • Profile picture of the author Nic Lynn
    Absolutely be 100% honest, but take all the deductions and write-offs available to you. They are there for a reason... for you to use them. If you are filing as a coporate entity, you can pay yourself rent on your home office )this is different that the typical home office deduction). You can sell your home office furniture to your corporate entity at fair market value and. You can write-off corporate donations... did you let go of that old computer, printer, cellphone, etc? There is lots beyond the normal operating expenses and usual home office deductions. Just make sure you dot your "i"s and cross your "t"s.
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  • Profile picture of the author Jeffrey Arthur
    You also need to take into account depreciation of certain things as well, like cars, computers, office furniture, etc.

    As Nic said, make sure everything is 100% honest, keep all recieipts, but it would be a good idea to talk with an accountant or do some research online.

    And maybe, if you havent already incorporated, 2010 might be the year you do it. There are so many more benefits to being a corp. instead of a sole proprietor.
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  • Profile picture of the author Rien
    Hi all, thanks for all the help! I almost forgot about the domains, I was floored when I went to check how much I spent on domains and renewals last year alone!
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  • Profile picture of the author moodykitty
    I'm desperately searching for more tax write offs as I'm going to owe taxes this year.
    My accountant told me I can write off mileage on my car even if I'm just 'browsing'. In other words, I don't have to actually buy something for my business to write off the mileage. If I'm searching for a new desk for my office for example I can write off that mileage while I'm hunting for it.
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