Maximizing Tax Claims: Tips for Listing Expenses

[Becky0216]

I know someone said you can claim lots of stuff on taxes. When doing my expenses, how do I list a portion of my electric, phone (can i do cell phone? its only really used for business), mtg., etc. I am just trying to get this stuff in order before it becomes a big mess.
Thank you.

 

[chefann]

Save your receipts and bills, and keep them with your tax stuff as documentation.I don't think you can claim a portion of your electric or gas bills unless you also claim a home office. But I'm not a tax professional. Phone is a little easier. Just estimate the percentage of usage that's business and put that percent of your monthly bill as an expense. For example: 50% business usage on a $40/mo. line would be $20 per month expense.I will restate, however: I am not a tax professional. Always get tax information from a tax professional.

 

[Becky0216]

thanks Ann, I thought I read that if I had a room designated as an office, I could claim that square footage from my mtg. As well as that area for my elec. etc. I guess I was wrong. I will just save everything for next year and see what happens.

 

[chefann]

You can - I don't because the space I use isn't used exclusively for PC, and it's a red flag for audits. You can probably find a website or a book at the library about the many, many deductions available. Some are more bother than they're worth, though.

 

[The_Kitchen_Guy]

Scanned receipts are now acceptable, because of online filing. Scanned images of receipts are a lot easier to wrangle.ETA: I am not a tax professional, nor do I play one on TV, so you might want to verify that statement.

 

[wadesgirl]

I claimed a home office for last year since I use the area soley for PC and Chef Success! But it was only 7% of my total square footage of my house. We deducted lot rent, electric, water/waste removal and house phone. My cell phone is primarily business so I was able to deduct 80% of it since I do use it once in a while for personal stuff.

 

[Becky0216]

I claimed a home office for last year since I use the area soley for PC and Chef Success! But it was only 7% of my total square footage of my house. We deducted lot rent, electric, water/waste removal and house phone. My cell phone is primarily business so I was able to deduct 80% of it since I do use it once in a while for personal stuff.

sounds like the same boat I am in. I have a room that is just my office. And my phone is used for Pampered chef and maybe a personal call once a week.

 

[wadesgirl]

Did you use a professional tax person? I did this year because I wanted to make sure what I was deducting was okay. He let me have everything I gave to him.

 

[Becky0216]

i will be using a professional next year for sure.

 

[wadesgirl]

I suppose this year would be your first year - DUH! I usually keep all my bills filed by month so for last year, I just pulled them all out, put them in an Excel document by category and showed just that has my "home expenses". That way he could see the separate. Then I had all my other stuff in PP. Mine asked me what each catagory meant and if it was for business purposes.

 

[lacychef]

My tax guy lets us claim a portion of our utilities. I think he takes the number of rooms in our house & divides by that...

 

[Rebeccascabinet]

I agree contact an account. We have an accountant. I know many times "home office" deductions are red-flags for the IRS, but talk to a tax pro.

 

[ChefJeniLobdell]

I just found out from my accountant how much I paid in taxes on my PC earnings. I almost died. How do you all work your businesses to make sure they are profitable enough after taxes and expenses to be worth our time? I really the the PC, but am a little discouraged. Any suggestions from this awesome group would be appreciated.

Thanks