Tax Write Off Question

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Tax Write Off Question

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r34lRockNRolla

posts: 2

Jul 15, 2009 1:28 PM ET Quote Report Abuse

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I work as an in-house SEO specialist, and I also consult on the side.

I have been debating if I should go to a seminar that is in my line of work, however they (like all seminars) are rather exspensive.

Could the plane ticket/seminar ticket be used as a tax write off?

Also there are some extra tools/services I would like to sign up for, one is 80 per month, can I use that for a tax write off of some kind as well?

Videography

posts: 672

Jul 15, 2009 3:39 PM ET Quote Report Abuse

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Generally, according to my accountant, if the expense is intended to increase your earnings potential, the entire cost is probably deductible.

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Steve Mann
Internet Videographer
MannMade Digital Video
My Email

KenRogers

posts: 46

Jul 15, 2009 8:51 PM ET Quote Report Abuse

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There are some `rules` to follow for business travel.

At least 50% of your time away, not counting travel days, should be for business. If so, 100% of the airfare is deductible. Same with the hotel, you could arrive the day before and stay the night after and expense that as well, along with meals.

The `tools` you mentioned should be fully expensed if used for the business.

What may be worthwhile is to start an LLC (and open a separate bank account). If it is just you in the business, an LLC is something you can do on your own with your state. Save the legal fees until you grow and bring in partners, then having the lawyers involved to create an operating agreement is critical.

If you don`t want to go the LLC route, at least get a DBA and a separate bank account. Without showing a separation between you and the business, your losses could be limited as `hobby expenses`.

r34lRockNRolla

posts: 2

Jul 16, 2009 12:23 PM ET Quote Report Abuse

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Very interesting, thanks for all the help

RivesCPA

posts: 9

Jul 16, 2009 12:26 PM ET Quote Report Abuse

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Generally any expense that is directly related to running, growing or improving your business is deductible. Be sure you keep track of all your expenses while traveling. Airfare, taxi, rental car, tips etc are all legitimate business expense while traveling. Meals while away from home on a business trip are deductible at 50%.

You don`t really have to set up a separate entity for tax purposes although it is not a bad idea and does have some advantages. I recommend to my clients that they set up a separate bank account and credit card for business expenses and income, just to be sure they capture all their business transactions when it comes time to file their tax return.

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Rives CPA PLLC Certified Public Accountant Chartered Global Accountant

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