Tax write off lists — business tax write off lists rarely cover everything the the United States Internal Revenue Service allows. If you need to put together a business tax write off list, start thinking about all your expenses and whether they help your business. Business expense write offs for tax purposes include the costs of carrying on business. You can write off legitimate expenses if you can realistically expect the business to make a profit. (And if you’ve set your consulting fees properly, you should have room for profit.)
Tax write off list details
Business expenses (tax write-offs) have to be "ordinary and necessary" — common, accepted in your busines, helpful and appropriate. If your expense is partly used for personal reasons, make sure you only write off the business part. But think broadly about what you own that could be brought into your business — portable media, netbooks, digital cameras, video cameras and home office furnishings may qualify.
Tax write off list
Here’s a short list of business expenses you can often write off for tax purposes. Be sure to check with an accountant to make sure your business tax write-off list is appropriate and necessary for you.
- Cost of Goods Sold — the costs for products and raw materials, including shipping
- Storage costs for products you sell
- Labor costs for workers who make your products
- Factory overhead expenses
- Capital Expenses from going into business, acquiring assets and making improvements
- Business Use of Your Home
- Business Use of Your Car
- Employees’ pay
- Retirement plans for you and your employees
- Rental expenses
- Taxes (some)
- Stationery and supplies
Those are just some of the write-offs enjoyed by small businesses, like consultants.
You may also want to consider the steps to becoming a consultant. Good luck — and remember, these are just some suggestions. Always check with an accountant or the IRS for tax advice.
- Office gadgets I can’t live without
- Sample consulting invoice
- Setting consulting fee rates
- Finance for consultants
- Consulting Fees: A Guide for Independent Consultants
- Discover Your Inner Consultant
- Discover Your Inner Entrepreneur (for moms)
Learn how to become a consultant with our official mentored course at Become a Consultant: How to Make the Leap.
Tax write-off list