Tax Deduction Categories
Income: Copies of receipts, checks or pay reports
Advertising – Business cards, flyers, newspaper ads, phone book ads, postage for mailers, internet and/or website
Children – Money paid to children for things such as helping deliver flyers, stuffing envelopes, cleaning office or salon, etc.
Educational Expense – Seminars, classes, shows, etc.
Gifts – Gifts to clients and other business associates
Insurance, Taxes ,and Licenses – Liability insurance, state and city licenses, property tax on equipment.
Office Expense – Bank charges, office supplies, postage, receipt and appointment books,
computer software and supplies, internet
Purchases – Equipment purchases over $200 such as computer, office furniture, salon chair, vehicles, etc.
Repairs and Maintenance – Repairs to equipment, scissors sharpening, cleaning of towels and tools, etc.
Rent and Lease – Booth space rent or lease for salon, booth space rent for shows, etc.
Product – All products that go onto hair, body or nails
Supplies – Scissors, combs, brushes, hair dryers, curling irons, curlers, drapes, towels, etc.
Telephone – Cell phone, long distance calls on home phone, extra phone lines into home for business, fax or internet
Travel – Hotels, airfare, cab fare, parking, cleaning while away from home, travel log, etc.
Meals and Entertainment – Out of town meals, meals with clients, associates and potential clients, tickets for events with or for clients
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.
Mileage and Vehicle – There are two ways to take a vehicle expense. One is to take the mileage to and from the salon, picking up salon and office supplies, meals with clients, driving out of town, seminars, classes, giving out business cards and flyers, etc. The other way is to take the expense of using the vehicle: fuel, parts, mechanics, oil changes, etc. Along with taking expenses, you can also depreciate the vehicle.