Home office business deductions is another area that has changed recently. The Internal Revenue Service has provided a $5 per square foot (max $1,500) standard deduction for individuals that qualify.
Independent Contractor Taxes…Know Your Options.
It can be downloaded from our eBook library.
The rules to qualify for a deduction have not changed and you should review your situation with a tax professional before taking any deduction as it relates to a home office.
If you use your personal vehicle to travel to/from client(s) sites or run errands for business purposes you have 2 options for expensing the cost.
- You can take a standard mileage deduction (.55 cents per mile in 2014) for each mile traveled for business.
- You can take actual expenses for the vehicle.
In either case a detailed mileage log is required to substantiate the deduction. My suggestion is to use the standard mileage option for at least the first year or until you get a tax professional to review your situation as deducting actual expenses comes with rules regarding personal use of the same vehicle.
Retirement plans are outside the scope of this eBook but be aware there are options out there as cash flow becomes available.
However, if you are interested in learning more about what taxes you need to pay and which forms need to be filed, download our FREE eBook: Independent Contractor Taxes…Know Your Options. Being prepared at year-end can save you time and an unexpected large tax bill.
Are you looking for a CPA in Naples or Fort Myers to help you with your business deductions and your tax planning? Contact me online or call my Naples office (239) 384-9688 or Fort Myers office (239) 768-5008.
This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.
