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Is car insurance tax deductible for self employed

That’s a great list! here are the ones you should take note of:

employees (form 2106): includes expenses from your job for which you were not reimbursed, but you only get the amount that exceeds 2% of your AGI (adjusted gross income), and only if you can detail. For example, if your AGI is $100,000, you must have at least $2,000 in employee/miscellaneous business expenses before you start taking advantage of the deduction. … read the full answer

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Self-Employed (Schedule C): You are allowed to deduct most business expenses in full. meals are discounted at 50%.

advertising and promotion expenses (if self-employed)

books and publications

  • books, trade magazines, newspapers and publications for your trade or profession

fees and fees:

  • Debts to a professional organization for people in your profession
  • union dues, initiation fees, and assessments for benefit payments to unemployed union members.
  • statutory dues for your profession
  • debts to chambers of commerce and similar organizations if membership helps you perform your job duties (see exceptions).
  • paid leaves of absence to state or local governments

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education and research

  • educational expenses related to your current job that maintain or improve your skills.
  • research expenses
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equipment and supplies

  • commercial use of the computer. for employees, it must be for the convenience of their employer and required as a condition of their employment.
  • supplies and tools you use in your work

home office

  • office expenses in your home if part of the home is used regularly and exclusively for your work. Employees: The use of your home office should also be for the convenience of your employer.
  • for more information, see irs publication 587

internet

  • employees: must be for the convenience of your employer and required as a condition of your employment.

job search expenses (employees)

To deduct job search expenses, you must be looking for a job in your current line of work (ie, not changing careers or looking for your first job). expenses include:

  • resume preparation (writing, typing, printing, mailing, faxing)
  • employment agency fees
  • executive recruiter fees
  • portfolio preparation costs
  • professional advice to help you improve your position
  • legal and accounting fees you pay in connection with the negotiations and preparation of the employment contract
  • advertising
  • costs of transportation to job interviews
  • long distance calls to prospective employers
  • newspapers you buy to read job advertisements
  • other trade publications you buy to read the job ads
  • half of the meals you pay for are directly related to your job search
  • if you travel away from home to look for a new job, your travel expenses, accommodation, meals (50% of the cost), etc. they are deductible only if the main purpose of your trip is to look for work. To substantiate the purpose of your trip, keep a daily record of your interviews, application efforts, etc.
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meals and entertainment

  • costs for meals and entertainment with a clear business purpose (ie, meetings with clients) (only 50% of the cost is deductible). keep a record of the date, place, amount of expenses, persons present, purpose of business, and business discussed. also keep receipts for expenses over $75.
  • for more information, see irs publication 463

telephone rates

  • commercial use of the cell phone.
  • cost of long distance business calls charged to home phone
  • separate business phone (home phone line is not deductible)

travel and transportation

  • travel expenses incurred while away from home on business
  • travel expenses paid in connection with a temporary work assignment
  • transportation between your home and a location of temporary work if you do not have a regular place of work but you normally work in the metropolitan area where you live and the temporary work place is outside that area
  • transportation between your home and a temporary work place if has at least one regular workplace for this job. no matter how far away the temporary location is in this case.
  • transportation from one job to another if you work two places in one day
  • if you are self-employed and your home is your place primary business, all business travel is deductible.
  • for more information, see irs publication 463

uniforms and equipment

  • protective clothing and equipment
  • uniforms (except if you are on full-time active duty in the armed forces)
  • dry cleaning costs for your uniforms or protective clothing (although not your everyday clothing)
  • specialized clothing designed for your job, as long as it is not suitable for everyday use
  • safety gear, such as hard hats , safety glasses, safety boots and gloves
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several

  • gifts, but only up to $25 per recipient
  • passport if needed for business travel
  • postage
  • office supplies
  • printing and copying
  • legal and professional services (tax preparation fee)
  • medical exams required by your employer
  • occupational taxes if charged at a flat rate from your city or other local government for the privilege of working in that area
  • commercial liability insurance premiums
  • severance insurance premiums
  • damages you pay to a former employer for breach of employment contract
  • employee contributions to state disability funds

self-employed only

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  • business loan interest
  • autonomous medical insurance (partial)
  • commissions and fees
  • business insurance
  • contributions keogh o sep
  • commercial property rental
  • office rental and utilities
  • repairs and maintenance
  • business taxes and license

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