Side Hustle Tax Tip: Deduct shared personal and business expenses by the percent
Posted by lvglawfirm on October 1st, 2019
Everyone knows the basic business expenses but there are few who like to live in the gray area of personal and business incurring expenses.
For instance, have you ever bought a car that you usually use for business work? Do you have a personal laptop always used for the business? What about your smartphone or the home internet connection.
You cannot apply the full cost of these as a deduction since it can raise some red flags and IRS may get behind you. However, if you have a good amount of usage of these in your business, you can deduct a portion according to the usage. For instance, if half of your fuel usually goes into business work, you can deduct half of your monthly fuel charge. As long as you have the justification for whatever you have shown as deductible expenses, you can include personal expenses by the used customer.
Saving on taxes can be hard if you are unaware of things. When you are on the verge of losing things due to financial issues, it is important to hire an expert to settle them down. Legal Services Maryland can help you save a fair share.
Also See: Business Expenses, Incurring Expenses, Gray Area, Everyone Knows, Business, Expenses, Personal
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