Tax Deduction Categories
Auto Repair & Maintenance
Income: Copies of checks and statements from sales, service, commissions and bonuses
Small Tools – Any tools that cost under $300 and or lasts three years or less. For example: sockets, screw drivers, wrenches, etc.
Depreciable Tools – Any tools that cost over $300 and lasts longer than three years. For example: compressors, lifts, machines, welding equipment, etc.
Protective Clothing – Coveralls, uniforms, boots, safety glasses, etc.
Supplies – Rubber gloves, chemicals, towels, containers, little things you use in the shop
Advertising – Business cards, newspaper ads, information packets you hand out, free samples, flyers, product testing, videos and CD’s
Accounting – Receipts for your accounting kit, computer programs and tax preparation
Car Expense – Gas, repairs, oil changes, tires, insurance, interest on car loan, license and registration, lease payments
Children – Money paid to children for helping with such things as delivering flyers, product, stuffing envelopes, cleaning office and car, etc.
Commissions & Fees – Commissions to down line or up line, yearly and/or monthly fees
Cost of Goods Sold – Cost of products sold whether sold wholesale or retail such as parts
Delivery or Shipping – Cost to mail or ship products
Dues and Subscriptions – Dues to professional organizations and magazines that have to do with your trade or business
Educational Expense – Classes or Seminars that you take to improve your business.
Gifts – Gifts to clients and associates
Insurance – Professional Insurance, liability, vehicle, health, property, bonds, in some cases life
Laundry & Cleaning – This includes uniforms and protective clothing and also your clothing when you are out of town
Legal & Professional Services – Attorneys, Accountants, Inspectors, Appraisers, etc.
Office Expense – Office supplies, forms and receipt books, computer supplies, Internet, postage, printing, day planner, palm pilot, bank charges
Repairs – Repairs to equipment such as computers, and other office equipment
Travel – Hotels, airfare, cab fare, parking, cleaning while away from home, trip log
Meals and Entertainment – Meals with clients, potential clients, and associates. Also tickets to movies or events with or for clients
Rent – Rental fees for equipment, booths for shows, technical equipment, rooms for meetings, office, etc.
Taxes and Licenses – Business, professional, state and city licenses. Taxes on property,
payroll, and sales tax
Telephone – Cell phone, long distance calls on home phone, extra phone lines into home for business, fax or Internet
Home Office – A separate room in your home to do business and accounting. A percentage of utility Bills, home owners insurance, property tax, mortgage interest, refinance fees, repairs and maintenance, cleaning supplies, office decor, etc. are deductible
Purchases – Any equipment, office furniture, computers, vehicles that cost over $200