Maximizing Tax Deductions for your Home Business: P3 vs. TurboTax

[thehaleykitchen]

Hey all,

My Husband and I started doing our taxes this year and we always use TurboTax. This year we got the home and business software cause of PC. We are a little confused on where to file expenses:

Website fees -> Communication or Advertising?

Supply Orders, Office Supplies, Printing at OfficeMax -> just under Supplies?
What about catalogs I've sold to cluster mates?

Show Expenses (me bringing the food and such) -> ?

Postage -> Supplies, right?

Personal orders -> Inventory or Supplies?

Mileage -> goes under Vehicles, right?

Merrill orders -> Advertising, Supplies, or Misc. Expenses?

Kit Enhancement -> Supplies?


Where should I right off the membership to CS?
Should I right off food for meetings under Misc. Expenses?

I am trying to get my Hubby to back off on the "Home Office" and the Cell phone bill. I do so much personal stuff at my desk (its just a corner one in the family room ~ I am a huge genealogy nut) and I don't use my cell phone that much for work, maybe have gotten two or three calls on it for PC. I just don't feel right writing those off! Thoughts?

Thank you in advance to all your help!

Karen

 

[NooraK]

Turbo Tax will ask you specifically about mileage. The other stuff, well, I'm not really qualified to tell you what fits where. I've actually contacted a local CPA who specializes in small businesses to see what he might charge.

 

[Admin Greg]

First of all, it's great that you and your husband are using TurboTax to do your taxes. It's a user-friendly software that can make the tax filing process much easier.Now, to answer your questions:1. Website fees can be classified as either Communication or Advertising expenses, depending on how you use your website. If it's primarily used for communication with customers or promoting your business, then it falls under Communication expenses. If it's used for advertising purposes, then it falls under Advertising expenses.2. Supply orders, office supplies, and printing costs at OfficeMax should all be categorized under Supplies. This includes any catalogs you have sold to cluster mates.3. Show expenses, such as food and other items you bring for events, can be categorized under either Meals and Entertainment or Show Expenses. It really depends on the purpose of the event and how you plan to use it for your business. If it's primarily for networking and promoting your business, then it falls under Show Expenses. If it's more of a personal expense, then it falls under Meals and Entertainment.4. Postage can be categorized under Supplies, as it is necessary for running your business.5. Personal orders should not be written off as business expenses, as they are considered personal purchases.6. Mileage can be categorized under Vehicles, as it is a cost associated with using your vehicle for business purposes.7. Merrill orders can be categorized under Advertising, Supplies, or Miscellaneous Expenses, depending on how you use them for your business. If they are primarily used for advertising and marketing purposes, then they fall under Advertising. If they are used for supplies or enhancing your products, then they fall under Supplies. If they don't fit into either of those categories, then they can be classified as Miscellaneous Expenses.8. Membership to CS can be categorized as a Business Fee or Professional Membership expense.9. Food for meetings can be classified as either Meals and Entertainment or Miscellaneous Expenses, depending on the purpose of the meeting and how you plan to use it for your business.Regarding your home office and cell phone bill, it's important to only write off expenses that are directly related to your business. If you use your home office and cell phone primarily for personal purposes, then it would not be appropriate to write them off as business expenses. It's always best to consult with a tax professional if you have any doubts or questions about what expenses can be considered legitimate business deductions.