Write-offs

dshcontracting

can't deduct work clothes or work boots. Only can deduct 100% of your cell phone bill if you use it only for business. They check your phone records! Also can only deduct mileage if you right it down every single time you get in and out of the vehicle. I made the mistake of showing profit my first year in business at age 20 with no previous employment record (worked under the table ) Got audited my first year in business. I lucked out because the river flooded on the last day of my audit. (took 4 trips to my accountants office by the auditor) All the agents got called back to manage IRS write offs for flood damage and just ballparked what i owed. wound up paying 500 bucks. But now i'm a little more careful to hide exspenses better!

747

Depreciation of equipment might be a writeoff. But i'm not sure.

ProWallGuy

I deduct all my work clothes, whites, tennis shoes/boots, and t-shirts every year. They have never checked my cell phone records, and I have whopping bill each month. And I've never had to document every stop I make in the truck for mileage; I write the beginning miles when I leave my driveway, and ending miles when I get home. I do scribble a quick note as to where I went, like: 3 estimates/cooper job/lunch with Big Dick's Remodeling.

Do you have an accountant do your taxes, or were you on your own?

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Wallpaper Hanger St. Louis
Digital Murals Installation

Flawless Finish

Your right Tscarborough. I just ask my mom who is an accountant and she confirmed what you said. She said a lot of people (including me I guess) use "write-off" to loosely when talking about deductions. I guess that is why I put it together. Thanks for informing me.

Flawless Finish

I would think work clothes would be taken off, but what about dress clothes? I wear them to estimates.

Brushslingers

Im gonna write off my dogs this year as "alarm system"... hehe

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Benn

dshcontracting

I have an accountant, but being the first year, we let a couple things slide to keep my taxes down. I made 500 dollars on paper. Tax code does say just as I wrote though. You won't know it till you get audited. They changed the clothes thing about 4 years ago. you used to be able to deduct.

415moto

I too thought you cant write off work clothes?

karma_carpentry

According to the IRS you can write off work clothes if they're required for the work and they're not suitable as ordinary cloths.

See the link here.

Who goes out to dinner in a worn carharrt overalls? I require myself to wear them because they hold my pencils and cell phone, so I claim those. I'd guess painters need a certain amount of clothes just for working, unless you're one of those who loves the 'fashion' of the Jackson Pollack dinner suit.

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Build on a good foundation.

Humble Abode

My accountant just told me that one of the big red flags for audits this year is home offices. That is, figuring a percentage of your household expenses and writing them off as a business expense.

EDIT: And why isn't buying lunch for my employees considered a business expense? It seems like lately it's one of my biggest expences...

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Just because some of us can read and write and do a little math, that doesn't mean we deserve to conquer the Universe. Kurt Vonnegut, (1922 - 2007) from the Novel 'Hocus Pocus'
The NAPP
Milwaukee Painting Contractor