are small business tax write off a good thing

This in turn makes the reimbursement a tax deduction for the business. Since this is a mixed use expense between personal and business, the cell phone charges should be paid by you personally and then reimbursed by the company for the business use portion through an accountable plan. What is reasonable?Īnywhere from 50% to 80% is a good jumping off point. Conversely, if you approach this from a position of being reasonable it is extremely challenging for the IRS to argue otherwise. If you attempt to deduct 100% of your cell phone as a small business tax deduction, the IRS will claim 0% and then force you to demonstrate why it should be something else. The minute you get the “Hey honey… we need milk and eggs” text message to your cell phone, it drops from 100% business use to something else. However, most small business owners also use his or her cell phone as a personal phone. Most small businesses operate on a cell phone. WCG is your advocate, and we can help position you and your business to maximize your small business deductions. In other words, we are not the tax police but our job is to remind you that tax police exist. Having said that, we are not trying to limit your tax deductions nor are we the government’s accountant. However, we want to start with the crazy things small business owners try to do since it is such a good springboard for discussion. Similarly to the 185 reasons to not elect S corporation taxation, there aren’t 185 small business deductions that you cannot take. Silly! Yet we digress.ġ85 Business Tax Deductions You Cannot Take At least we are not like gas stations… $39.949. Why do we all love 95 cents? We all know that 39.95 is really 40 bucks. Our book is also available for purchase as a PDF from ClickBank for $39.95. It is available in paperback for $59.95 from Amazon and as an eBook for Kindle for $49.95. You can fix yourself a Moscow Mule with cucumber vodka and click on the button below for the online version. This page is a condensed version of Chapter 11 on Tax Deductions and Fringe Benefits from our book titled Taxpayer’s Comprehensive Guide to LLCs and S Corps. Let’s not forget about the Sutter rule too… the good doctor who made every meal a business meal (spoiler alert: he lost).

This post will discuss the 185 small business tax deductions you cannot take, explain how to position yourself on allowable business tax deductions, and then get into hot topics such as automobiles, home offices, deducting MBAs, Cohan rule and other fun things.

Yes, you want to be able to get a little extra from your hard work and your business.

Are small business tax write off a good thing