It’s the last day of 2009, which means tax season is just around the corner. That is a good thing for some and a bad thing for others. Whether it’s good or bad for you, one thing’s for sure, you NEED to be sure you claim all of your yearly business expenses!!
(NOTE: I am not a certified financial adviser of any kind! Always consult with a CPA or some sort of finance professional before putting any advice I provide into action.)
Hopefully you kept track of your incoming and outgoing for the entire year. I know I DIDN’T my first year online and because of that the following tax season was a total nightmare! I learned from that and recorded every single incoming and outgoing transaction from that year on and started paying taxes quarterly and now tax season is a breeze!
Here is a list of the tax deductions that I claim for my online business:
Computer – Duh If you bought a computer in 2009 you better claim it as a business expense! The same goes for extra monitors, computer desk(s,) chair(s,) printers etc.
Internet fees – I work at home, so the Internet usage is shared between business and home. I figure I use it 80% of the time for business, so I add up what I paid the entire year for Internet, take away 20% (personal use) and what’s left I claim as a business expense.
Ebooks, scripts, software – Yep, ebooks are education and scripts, software etc. are necessary and legitimate business expenses.
Hosting & Domain Registration – With most Internet Marketing business models, you can’t even run your business without a domain and hosting. Once again, very legitimate and you should definitely be claiming it as a business expense!
Seminars – I’m not much of a seminar goer, so this isn’t one I’ll be claiming, but if you went to any Internet Marketing seminars, they are absolutely tax deductible!
Video cameras and other devices – If you did any video in 2009 and needed a video camera, webcam, digital camera etc. that’s also a business expense that should be claimed.
Outsourcing – This SHOULD be one of your biggest expenses! Outsourcing is a powerful business accelerator, so you should be outsourcing. No matter what it is you’re outsourcing (writing, coding, general work) if it relates to your business it’s a tax deduction.
Business Use of Home – This is a BIG one and one that I missed initially (thanks Kris.) As Kris mentions below in the comment field, there’s a formula used and your tax professional should do it, as mine does for me, but it’s a big deduction!
Advertising – Another big one I forgot initially (thanks Brenda.) Any and all advertising that you paid for including PPC, 125′s purchased on blogs etc… it’s all deductible!
That’s all I can come up with off the top of my head, but I’m sure there are more. Basically, anything that you spent money on, which was used in your business during the year should be deducted!
DON’T be afraid to claim something! If you don’t claim it, that’s money that you’re just throwing away… just giving to the government.
img credit: brianjmatis