Common Tax Expenses for Home Based Business

The following are common tax deductions for your business. Hopefully, you’ve been keeping good records of your biz income and expenses! I suggest everyone have a separate checking account for their business to help with tracking. Even if it’s not a biz checking due to high fees, just a separate personal checking account in your name and dba your biz name below it works great.

• Coaching groups or shop review services (Julie’s Success Circle or Wreath of the Month Club)
• Supplies used in your final product (ribbon, signs, ornaments, wire, wax, etc)
• Supplies used to help you make your final product (scissors, mat, glue, shelving, office supplies, tape, boxes, etc)
• Equipment used solely for business (camera, iphone, tripod, Mevo, lights, printer, computer, embroidery machine, sewing machine, etc.)
• Advertising (Facebook Ads, Etsy ads, Google ads, printed flyers or postcards, business cards, signs, etc.)
• Shipping costs
• Software programs/Subscriptions (ManyChat, Tailwind, Zoom, Canva, EtsyRank, Mailchimp, Tubebuddy, etc.)
• Virtual Assistant or Freelance Fees (if over $600 you’re accountant will need to issue a 1099 so have them complete a W-9)
• Publications (Tutorials, books, magazine subscriptions used for biz)
• Sam’s Club, BJ’s, or Costco membership fees
• Website fees (hosting, domain name, developer, maintenance packages, etc.)
• Business license fees
• Professional Fees (Tax preparation, bookkeeping, attorney, etc.)
• Transaction Fees (Stripe, Paypal, Etsy, credit card fees, Square)
• Home office deduction if you have a dedicated place ($5 per sq foot of your home office, up to 300 sq feet or a % of your home expenses – check with your accountant)
• If your whole garage is used for manufacturing a product, there is a deduction for this – check with your accountant)
• A  portion Housekeeping fees  if you have a home office.
• A portion Yard maintenance fees if you have a home office
• Any home maintenance (painting, roofing, HVAC, etc.)
• Mileage on car (to purchase supplies, take to shipping, run biz errands, etc.)
• Travel Expenses (to events, flights, ubers, taxis, meals, hotels, etc.)

**This list is meant to be suggestions of possible deductions for your Creative Business, however, you should consult your CPA or tax preparer for information related to your tax account.