Writing Off Work Devices

Do you own your own business? If so, you’ll be glad to know that some of those devices you’ve purchased for work or plan to purchase for work can be written off as tax deductions.

So, what kind of things can be deducted? Well, surprisingly, more than you might think!  

Cell Phones

First things first, if you want to buy yourself a nice cell phone and use it for business purposes only, you can deduct its cost and even the cost of your monthly bill from your taxes.

If you use the phone for both business and pleasure, then you can deduct half of its purchase price and half of your bill as a business expense. And, hey, half is definitely better than nothing!

Internet Bills

Sometimes, we find ourselves buying “on the fly” internet when we need to work and aren’t at the office.

If you’re ever in a hotel or an airport and need to buy an internet connection to get your work done, don’t worry. You can deduct the internet cost as a business expense.

The same goes for your regular office internet connection too. As long as you’re using the internet strictly for business purposes, you can deduct the full amount of your monthly bill.

Computers

Do you need to buy a computer to get your work done? If so, don’t worry. You can go ahead and deduct the cost of the device as a business expense.

Just make sure that you can demonstrate and prove how you use the computer for business. Also, keep any receipts related to the purchase just in case you are ever asked to verify the cost of your deduction.

As you can see, business owners can find lots of ways to save. The key is just to know what counts as a legitimate deduction and what doesn’t. Check in with an accountant if you have doubts about a particular deduction. That way, you can avoid getting yourself into trouble with the IRS.

The Basics of Business Expenses

Every business has expenses. The good news, however, is that many of these expenses can be deducted, thereby lowering a business’s taxes. If you run a business, then you’ll definitely want to educate yourself on what qualifies as a deductible business expense. That way, you can safely get all the deductions available to you and benefit from them as well!  

Business Expenses Defined

Business expenses can be defined as anything that is an “ordinary and necessary” expense for your business. Basically, if you have to have something for your business and everyone else in your line of work does and would too, then it probably counts as a business expense.

However, what type of business expense it qualifies as and whether or not it’s deductible is dependent on a few different factors, which is why it’s always best to have a tax professional look over and handle your business expense deductions to make sure you’re doing everything correctly.

Business Expenses Vs. Personal Expenses

One of the things that you really have to be careful of is keeping business expenses and personal expenses separate. Of course, this can be hard when an expense is….well…kind of both. When you have a home office, for example, you have to go through some major steps to figure out which “percentage” of your home the offices takes up and, thus, how much you can deduct for related business expenses.

It can get pretty crazy trying to separate the two, which is another reason why a qualified financial adviser is such a great tool to have on your side. In fact, when it comes to separating business and personal expenses appropriately and ensuring that you get as many deductions as possible, there is no better resource than a financial adviser.