Self-employment deductions?

Question

I need a list of all or most self-employment deductions. I don't want links to search pages. Please only post links to pages that actually have the deductions listed. Thanks.

I also need the expenses that self-employed people are allowed to take. Thanks.

Answer 1

Here's a quick list from the State of Arkansas website:
http://dpaweb.hss.state.ak.us/manuals/ta/759/759-5_income_from_self-employment.htm#759_5_B_1__Expenses_Allowed_as_Costs_of_Doing_Business

Here's another short list of deductions:
http://www.job-employment-guide.com/self-employment-deductions.html

IRS Publication 535 will go into more detail, and gives a broader overview of Business Expenses.
http://www.irs.gov/pub/irs-pdf/p535.pdf

Then see Chapter 8, (page 31) of IRS Publication 334
http://www.irs.gov/pub/irs-pdf/p334.pdf
Chapter 8 details deductible business expenses.
Chapter 8 also details what is not deductible, starting page 40.

Some common expenses are Car, Travel, Gift, and Entertainment.
IRS Publication 463 goes into detail
http://www.irs.gov/pub/irs-pdf/p463.pdf

Also, the Home Office and Business Use of Your Home:
http://www.irs.gov/pub/irs-pdf/p587.pdf

Another good place to start are the instructions for Schedule C.
http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Your business, and self employment expenses will be reported on Schedule C. The instructions give a line by line overview. In addition to Schedule C deductions, Schedule A deductions will reduce your tax liabilty as well.

You are allowed to deduct all reasonable and ordinary expenses you incurred, related to making your self employment income. That list you seek should come from your receipts, your paid bills, logs, appointment calendar, journals, and other records you have for the year.

The IRS is well aware that home based businesses sometimes play a part in tax avoidance schemes. You are not allowed to deduct personal expenses. You are not allowed to deduct costs of items for personal use. If you don't have certain business expenses, don't report that you do
http://www.irs.gov/pub/irs-pdf/p4035.pdf
However, you are allowed to pro-rate some costs, and expenses if they were partly for business, and partly for personal use.

Check out the IRS One Stop Center for small business:
http://www.irs.gov/businesses/small/index.html

Hope these links help.

Answer 2

is that all?

deductions would be the expenses associated with producing the income
like if your business makes shirts,, the cloth, the thread, the buttons,, those things would be a deduction,, also the sewing machine and scissors,, needles ,, etc would be depreciated over time and would be deductions. If you borrowed money to buy materials, the interest would be a deduction. If you rented a building to make the shirts in, the rent would be a deduction, if you shipped the shirts to me,, the shipping would be a deduction,, buying a box to ship in,, that's a deduction, paying the electric bill to run the sewing machine, that is a deduction, having a phone for me to call and order the shirt, that is a deduction, wages paid to the person answering the phone, that's a deduction, placing an ad in the paper , that's a deduction, hiring a lawyer to defend yourself CZ I sued you for not sending me the shirt I ordered, that's a deduction. Are you starting to catch on?/ the expense involved with making the money,, it's a deduction.

you can look at a Schedule C to get some of the exact categories , no doubt someone will give you more detail

Answer 3

http://www.realestatedonation.org/ takes in property donations in any state

Answer 4

There isn't a list. Anything could potentially be a deduction if there is a legitimate business need for it order to make money. The Schedule C is a good start, but you also have depreciation, business use of home, mileage or actual expenses for the use of auto, and disposition of business property which require additional forms. Other common expenses include contract wages, licenses, taxes paid, cost of goods sold, subscriptions, gifts to potential clients (and the limits imposed on these), advertising, and utilities. Be careful with cell phone expenses since the IRS has been denying them if you use a family plan or cannot show actual business verses personal use.

My best suggestion for anyone starting a business is to get an experienced tax preparer, enrolled agent, or CPA who specializes in tax preparation to handle keep up with these things. You can then concentrate on keeping up with your business.

Deductions are expenses. There are some rare business credits, but it's usually for things like devleopment in low income/redevelopment programs, alternative energy, or other business specific governmental program.

Answer 5

The IRS uses the term "ordinary and necessary" to describe the types of expenses a person can deduct on their Sch C. These will vary with the type of business.

A bag of grass seed would not be a legitimate expense for me as a tax professional, but would be for a landscaper. A landscaper might have trouble deducting the cost of a membership to a tax research site, but I would be able to.

Answer 6

If you wish to ask if a specific item is deductible, many people on this site will be glad to help. If you state what field you work in, you will probably get replies listing typical expenses in your field. As stated, your question is to broad for a useful answer. That said, the 3 answers above mine are good, given the information we have to work with.

Answer 7

You're not likely to find a list. Any reasonable and necessary expense related to the production of income is generally legitimate. Common sense should identify what is legitimate and what is not.