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.
how about Subscription fees for Success Circle, Wreath Making of the Month Club, etc?
Yes! And your Wreath Retreat and Wreath Makers Live tickets!