Meals with clients and potential clients are allowed. You may also include meals for office staff if you have a meeting or other requirement to not leave the office, but meals alone are generally not deductible unless you are on overnight travel. REQUIRED: You must keep a written record of the date, cost, attendees and business purpose for a meal to be deductible.
If you use an area of your home regularly and exclusively (meaning it can't double as a sleeping or eating area), AND you are either required to work at home or there is no remote office for you to do your work, then you may have a deductible home office. If so, you can deduct a portion of your rent, interest, taxes, utilities, maintenance costs and more!
Are you using a mileage tracking app on your phone? Or tracking mileage manually? Either way, you are required to have some form of written evidence to prove your deduction that is created AS YOU GO. Quick Fact: You don't need to track mileage every single day; you may use a sampling method, such as every day for a month a few times a year to provide evidence.
If you are self-employed and file your taxes on Schedule C with your 1040, you know that you are subject to Self-Employment Taxes. SE Tax is a fancy name for the employee's plus employer's share of Social Security and Medicare taxes. If your self-employment income is under $145K, you'll pay almost 15% in SE Taxes (in addition to income tax). Is there a way to reduce this? Yes, through Tax Planning, a tax advisor can structure your business income to pay less SE tax.
An LLC can be an effective way to protect your assets from lawsuits. But a single-owner LLC does nothing to save you on taxes all by itself. However, you can make an election to have your LLC taxed in a different way, such as an S-Corporation. Doing so will separate your income into two streams - wages, which are subject to employment AND income taxes, and profits, which are subject only to income tax. There are other benefits that you can discuss with your Tax Advisor to make an LLC truly a tax-saving tool.
Unless your vehicle is 100% strictly business use, the answer is "NO, you can't write off the whole car". You can write off only the business use percentage. But, then again, you might not want to do that. Why? Because you cannot use Standard Mileage deduction if you "write-off" the purchase price. You may find it a better tax savings to use the Standard Mileage method and reduce your income over several years.
Find out here how Tax Planning can provide a huge return-on-investment by using proven strategies to lower your tax bill going forward.
Tax Preparation is the art of reporting your financial history to minimize your tax bill based on what you have already done.