Online Courses, Ebooks, and More - How Much You Can Really Write Off
What can I write off? It’s a question I get all the time, and it’s a good one. No one wants to send the government more money than they have to (cause let’s face it, they clearly don’t know how to handle the cash). I’m all for paying your fair share, but let’s do everything we can legally do to pay less.
Here are some of the most common expenses that service based business’ have and whether or not you can write them off. (Spoiler alert, In general, any expense related to the creation of revenue can be written off. As always, keep all of your receipts and speak with a tax professional.)
Accounting Fees
I’m going to start with my favorite one! Get yourself both a bookkeeper and an accountant/tax pro. Not only will they save you money by keeping your records and getting you all the tax breaks you’re entitled to but their services are also deductible! A win-win-win!
Advertising
All those lovely Facebook ads, Google ads, and the like...all available to be written off. Advertising and marketing are essential to business growth, make sure you’re taking credit for it on your tax return!
Business Services
Bookkeeping software, CRM software, webinar platforms, scheduling apps, if it’s a software or a service that helps you run your business it’s a write-off.
Computers and Related Tech Equipment
Your laptop, keyboards, webcam, lighting, video equipment, all items that can be written off. If it’s necessary to run your business you can deduct it on your taxes.
Consulting and Contract Labor
Do you have a fabulous copywriter? A stellar business coach? These services are so valuable to help you grow your business and totally deductible.
Online Courses and Ebooks
Continuing education is deductible. This one is a bit trickier though. Education expenses can be deducted if they maintain or improve your skills or licensing, but can’t be deducted if you’re meeting the minimum requirements for your job. For instance, as a CPA I would not be able to deduct my college courses necessary to become a CPA. But since I am already a CPA I can deduct my expenses for the continuing education necessary to maintain my license.
I can also deduct expenses related to learning other necessary skills, such as online courses about Facebook ads, how to sell, and growing an online business. If you’ve got an education expense you’re not sure about just email me and we can figure it out together!
Meals
There’s been a lot of talk about this one lately as the rules have recently changed. Previously 50% of both meals and entertainment were deductible. So if you took a client to a ball game, you could deduct 50% of that expense on your tax return.
The rules have been amended to scrap the 50% on entertainment. So now if you take a client to a ball game you can deduct 50% of the food you consume but not the cost of the tickets. The meals must be ordinary and necessary in the course of business, not lavish, and the taxpayer (you) must be present. As always chat with your tax pro about this.
Travel
Travel expenses such as hotels, tolls and parking fees are definitely deductible as long as the trips are related to business. Note that gas is not a deductible expense if you are claiming mileage (which you should totally be doing).
Mileage
Business trips in your personal car are deductible. I highly suggest using an app like Mile IQ to track your mileage for you as there are some very specific data points you have to track. Go here to learn more.
These are just a few of the most common expenses I see with my clients, there are several more things that are deductible. In general, any expense related to the creation of revenue can be written off. As always, keep all of your receipts and speak with a tax professional!
Questions? I’d love to answer them, shoot me an email and let’s chat!