When you have a business, you can deduct a lot of things you couldn’t otherwise. The rules are quite simple, according to the IRS.
If an expense is “ordinary and necessary to the production of income”, the IRS tells us that it is a deduction. That’s why the answers are so different for different businesses when it comes to deductions.
What’s deductible? – It depends.
Rather than giving you a long list of things that might be deductible, I would prefer to ask you where you currently spend your personal money.
In the right circumstances, just about anything can be deductible. That’s why online businesses have such a unique position when it comes to tax deductions. If you have something you love to do and something you spend money on, you can easily start a business.
If you know how to sell, you can sell. And that means you can sell anything. And with an online business, you can sell through affiliate marketing (being paid for referrals), drop shipping (someone else fulfills the sale) or by stocking up a product and then having a third party like Amazon ship it or even ship it yourself.
If you like shoes, you could start a blog about shoes and make money selling through affiliate links. That’s a business you could start in a weekend. And, voila! You have deductions.
What do you want to write off? How should you structure a business around that? Once you have that answer, you’ll discover how quickly and easily you can start a new business.
Got a question for “How can I write off…”? Please leave your comment here and I’ll feature it in a Tax Minute (www.YouTube.com/USTaxAid) or in a blog. Or if you’re a coaching member just send it to me at firstname.lastname@example.org. Not a member yet? Join at https://www.ustaxaid.com/coaching-program/.