I have seen a lot of posts asking questions like can I deduct my phone, groceries, room I live in (parents house), car, clothes, etc. I started a business and a friend said ….. (you fill in the blank). I read online about a guy that deducts his house, Maserati, etc in full as a business expenses.
The answer to some of these is NO. Some others the answer is MAYBE.
There are definitely deductions you can take as a business. Some are different depending on business entity: Sole Proprietor, Partnership, S-Corp, Corporation, LLC, and how the LLC is classified. There are two publications from the IRS that I always default when discussing these issues with clients.
Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C)
Pub. 535, Business Expenses
Other Publications that are of interest:
Corporations……………………………………………….Pub. 542
Farming………………………………………………………..Pub. 225
Fishermen (Capital Construction Fund)…Pub. 595
InternationalPartnerships…………………………Pub. 541
Passive activities…………………………………………Pub. 925
Recordkeeping……………………………………………Pub. 583
Rental……………………………………………………………Pub. 527
S corporations…………………………………………….Instructions for Form 1120-S
Starting a business…………………………………….Pub. 583
Need help with issues you are having with the IRS? Balance due, Lien, Levy, etc. I can help.
Call or email today: 712-274-6469 or babitzke.associates@gmail.com.
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