Tax Deductions for Internet Marketers

Wednesday’s Wisdom:  It is a wonderful thing to be able to write off your business expenses.  However employ deductions cautiously.  Make the extra effort to consult with a tax professional before trying a new deduction.  The IRS offers free tax advice.  It is more cost effective to seek advice than to have to hire an attorney.

Tax deductions for business expenses are not just for large corporations.  If you are an internet marketer or online entrepreneur you can also take advantage of business tax write offs.  So, it is important for you to know which ways you can save money on your taxes.

There are two groups of people that are new to business taxes.  One group thinks that they are too small and therefore would not qualify for any tax write offs.  The second group thinks that everything that they touch while doing business can be written off.  Both extremes can cost you money.  The group that thinks that they are too small will lose money on possible write offs.  The second group could lose money in IRS fines.

The kinds of things that can be written off are things that deal with the ongoing operation of your company. 

Can You Get a Tax Deductions for Equipment?

Equipment is one thing that can be written off.  An example would be a new laptop.  If it is used more than 50% of the time for business then it is a candidate to be written off.  Make sure that you assess the expected lifetime of the equipment.  If it is expected to last more than one year then you may need to contact a tax professional to determine if a depreciation schedule is needed.

Can Advertising be Written off?

You can write off your advertising expenses.  All types of advertisement qualifies.  That would be everything from banner advertisement to print advertisement.  If you feel that you are not very good at developing your own advertisement and you hire a professional to help you design and create marketing materials the cost for this service would be deductible.

Can the Cost of Hiring a Professional Be Written Off?

Costs for hiring a professional to help you with your business may be deductible.  Let’s say that you need help writing content for your e-commerce site and you hire a professional copywriter to write content for this site.  The cost of hiring that professional may be tax deductible.  Other examples of when hiring a professional to help you with your business may be tax deductible include hiring an attorney to help with business legal aspects or a bookkeeper to prepare tax returns, etc.

Can a Mortgage Be Written Off?  What About Rent?

Working from home has tax benefits.   A portion of your rent, mortgage, insurance and utilities may be deductible.  There are specific guidelines that you have to follow in order to take advantage of these deductions.  Make sure you consult a tax professional.  Google tax advice and the IRS because the IRS gives free tax advise.

Can a Car Be Written Off On Taxes?

If you use your personal vehicle for business purposes you may be able to write off the repair costs.  Contact a tax professional to find out the details of what percentage of the time you need to use your vehicle for business in order to deduct these expenses.

Conclusion

Take advantage of tax deductions.  Doing so is a very good way to minimize the money that streams out of your business.  I encourage you to take advantage of every deductions that you qualify for.  I caution you, however, to consult with a tax professional before taking a deduction just to make sure that that your deductions are legal.  

If you learned anything new from this article then please leave a comment.