You can deduct any educational workshops or trainings that relate to your industry or the skills you need while running your business. Then, treat it like any other business expense when you’re doing your bookkeeping. Since direct home office expenses are completely deductible, pay for these expenses directly from your business bank account.
Remember, the key to writing off direct home office expenses is that you need to make sure they’re expenses that you only use for the business portion of your home.
Direct home office expensesīy now you’ve probably heard of the home office deduction. This will be based on your business usage percentageĪt the end of the year, add up the deductible portion and give that number to your bookkeeper or tax preparer so they can add it to your tax deductions. If you’re on a family plan, you can only write off a percentage of your portion of the bill, not the entire bill.
Related Q: What Are Tipped Employees? Finances and Taxes How to track the business portion of your cell phone If your bill is $120 a month, then you can write off $60 a month ($720 a year).
The percentage of time that you use your phone for business is the deductible portion of the bill.Ĭell phone bill x Business usage percentage = Deductible portionįor example, if you use your phone 50% of the time for business, you can write off 50% of the bill. You may also check emails, text clients, and post to your company’s social media accounts. Keep in mind that using your phone includes more than making calls. To write off your cell phone bill, first figure out how much you use it for business versus personal purposes. Nowadays, it’s not uncommon to pay $100 or more a month for your pocket computer.īut while cell phone bills are rising, many business owners overlook this tax deduction because they don’t know how to write it off. That’s it.īack in the early 2000s, when Nokia flip phones were king, cell phone expenses were WAY lower. At the end of the year, you run a report to see your total mileage. Then, you get to relive your online dating glory days by swiping left or right to categorize your mileage as business or personal. It has a feature called Drive Detection which automatically knows when you’re driving so it can track your travel. My favorite mileage tracking app is MileIQ.