One of the biggest reasons that people enjoy being self-employed is all the tax breaks that are surely heading your way. There are a number of different deductions that you should be taking advantage of when you are a small business owner. Some small business owners might be wondering if there are any of their devices that are able to be written off. The answer to that question is most definitely a yes. Mark Dicus & Company is here to talk about what devices you can plan to write off when you own and operate your own small business.
Awe, our trusted cell phones; many of us can’t live without them. If you are a small business owner, your cellphone is probably something that is forevermore glued to your hand. If you use your cellphone for your small business, it is something that you can look into writing off. You just need to make sure that you are writing off the right amount for your cellphone use. If the phone you are using is 100% a business related phone, you can write the whole thing off. However, if you use it partially for personal use, you can’t deduct the entire thing. If you use it half of the time for personal use and half of the time for business, you can only write off that 50% used for business.
For the IRS to acknowledge that you need the devices you do for your business, they need to see that it is a necessity. You can’t just write off outlandish devices and expect to get away with it. The devices that you use for your business need to be within the realm of reason. For some tech jobs, obviously, you are going to need computers and other tech to do your job. However, there are other small businesses, like hand painted cards, that might not seem so clear cut. Make sure the devices you are trying to write off are going to look reasonable to the IRS.
We live in a day and age where the internet is something that we all need to have. If you are owning and running a small business, you are no exception. Anywhere that you pay to use their connectivity, you can deduct that cost from your taxes.
There is a great deal of software that is able to be deducted from your taxes for business purposes. Whether it is word processing software or other programs that are needed to keep your business afloat, go ahead and deduct them. However, you shouldn’t try and abuse the system or you will be flagged.