Gross receipts from sales and/or services
- Copies of checks and statements from sales, service, commissions, bonuses, and 1099 Forms
- Income from ownership in another business (K1 forms) interest on bank accounts or loans made to someone else
- Accountants, accounting software, payroll companies, tax preparation, bookkeeper, etc.
- Business cards, social media, open houses, flyers, product testing, videos, and CDs
- Money loaned or invested that there is no hope of recapturing
- Fees charged by banks to maintain an account, wire fees, ATM withdraw, or other bank services
- Money paid to children for helping with such things as delivering flyers and/ or product, stuffing envelopes, cleaning office and/or car, modeling. Must keep a detailed log of tasks and how paid.
Computer, Internet, and Tech
- Software, Online services, Internet expense, computer maintenance
Delivery or Shipping
- Cost to deliver or ship materials
- Tools that cost more than $500 and will last more than 3 years
Dues and Subscriptions
- Dues to professional organizations and magazines that have to do with your trade or business
- Fees you pay to haul off trash and waste
- Books, classes, or seminars that you take to improve your business
- Board and staff meetings, training, educating employees, and employee benefit programs
- Compressors, trailers, scaffolding, generators, welding equipment, etc.
- Tools and equipment you rent or lease that you keep for a long period of time
- Exhibits for publicity. Costs include venue expense, displays, food, samples, etc.
- Any tools or equipment you rent or for a one time job
- Gifts to clients and associates limited to $25 per person per year
- A separate room in your home to do business and accounting. A percentage of utility bills, home owners or renters insurance, property tax, mortgage interest, refinance fees, repairs and maintenance, cleaning supplies, office decor, etc may be taken. It is determined by square footage of office space vs square footage of the entire house
- Liability, vehicle insurance, bonds, health insurance for employees, and workers compensation insurance, key man life, and/or property crime
- Interest paid on construction loans, equipment loans, credit cards, vehicles, and/or mortgage interest on building or shop, etc.
- Costs for an individual or company to clean office space, shop space, and grounds
Laundry and Cleaning
- Includes uniforms and protective clothing and also your clothing when you are out of town
Legal and Professional Services
- Attorneys, accountants, inspectors, appraisers, franchise fees, architects, engineering, etc.
Materials – Cost of Goods Sold
- Anything you put into a building or service that stays with the building
- Meals with clients, potential clients, and associates. Note: entertainment is no longer deductible
- Credit card convenience fees to take payments by credit card such as merchant services Square, PayPal, etc.
Mileage or Vehicle
- Expenses for all company vehicles including repairs, maintenances, fuel,
insurance, vehicle washes, licensing, interest on loans, etc. Mileage can be
taken fro personal vehicles used in part for business
Office Expense other than consumables
- Office supplies, computer supplies, Internet, postage, phone apps, beverage services
- The IRS law states that an officer (owner) of a corporation, must be paid a reasonable wage for services rendered to the company. They must be paid with a W-2 just like all employees.
- Companies you hire to perform services for your company for example consulting, trash bins, sanitation, etc.
- Brochures, forms, signs, etc.
- Coveralls, boots, hard hats, globes, coats, uniforms, etc. Uniforms include shirts, hats, and jackets that have the company logo on them
- Any equipment, office furniture, computers, vehicles that cost over $500
- The commission you pay to a Realtor to sell a property
- Office, shop, storage units, etc.
- Repairs both office and construction equipment and tools
Return and Allowances
- Money refunded for returned products or services, discounts given and rebates on sales
- Cameras, alarm systems, guard dogs, or anything used to protect property
- Things you use that don’t stay with the property and/or used in the shop
Small Tools and Equipment
- Tools that cost under $500 and last less than three years such as hammers, screwdrivers, sockets, small saws, etc.
- Costs you incur before you open the doors for business, such as setting up accounts, research, advertising, etc. Limited to $5000 in one year
- People or companies you hire on a job by job basis to do part of a job. Individuals paid over $600 must be given a 1099 Misc
Taxes and Licenses
- Property tax, payroll tax, corporation tax, etc. Business, professional, state, and city licenses
- Cell phone, extra phone lines into home for business, fax, Internet, office land line, phones for employees
- Shows that you have a booth in or shows that you attend to check out current trends in the industry
- Hotels, airfare, cab fare (ex. Uber or Lyft), public transit, parking, cleaning while away from home, business trip log, bus, train, etc.
- Internet hosting and services, website design, and maintenance