Wray Rives CPA CGMA

See Wray to CYA

Business Tax Deductions

● Cost of Goods Soldo Materials, Components, Supplies related to tangible

goods you sell

● Advertisingo Marketing, Promotional items, gifts

● Auto and Vehicle Expenseo Mileage or Actual Expense

o Must track Mileage

Business Tax Deductions

● Commissionso Money you pay others to bring business to you

● Contract Labor/Outside Serviceso Be sure you issue 1099’s

o Don’t call them employees

● Depreciationo Write off assets you use in the business

o Sec 179 and Bonus Depreciation

Business Tax Deductions

● Payroll/Wageso Be sure you file W2’s and 941 Forms

o Sole proprietors/Partners do not receive wages

● Interest Expenseo Only for business financing

● Rental and Lease Payments

● Insuranceo NOT Health Insurance

Business Tax Deductions

● Professional and Legal Services

● Office Expense and Supplies

● Repairs and Maintenanceo For business assets

● Taxes and Licenseso Sales tax if you include it in revenue, property tax on

business assets,

Business Tax Deductions

● Travel and Entertainmento Per Diem (limited for Sole Proprietors)

o Catered events for customers/employees 100%

Deduction

● Utilities for separate business location

Home Office Tax Deductions

● Area used EXCLUSIVELY for business

● Does not have to be a separate room

● Mortgage Interest, Property Taxes, Utilities,

Repairs, Maid Service, Lawn Service, HOA

Dues

● Depreciation-Impacts exclusion when you

sell the home

Unique Business Tax Deductions

1. Breast implants for an exotic dancer.

2. Cost of beer given to customers of a

convenience store.

3. Cost of cat food for a junk yard owner.

4. Body oil for a professional body builder.

5. A portion of the money paid to a live-in

girlfriend