Sunday, January 10, 2010

Common Tax Deductions for the Freelance Writer

  • Office space in your home (calculated as a percentage, in square feet, of your whole house). This percentage is then used to determine what percent of property taxes, insurance, and mortgage payment you can deduct as a business expense.
  • Computer(s)
  • Research Material
  • Part of your utility expenses
  • Internet expenses
  • Travel Expenses to Conferences
  • Website Expenses
  • Services Purchased (such as website design or hosting)
  • Software
  • Medical insurance
Remember if you continue to show a loss, year after year, the IRS considers your business a "hobby," rather than a business for profit. Deductions can not be taken from "hobby income." Also, year after year business losses are an audit red flag.

1 comment:

Ballack said...

It is a good post to gain some knowledge about the common tax deductions. If the person is traveling for the purpose to get a business, he will be exempted to pay the amount as travel expenses in home base tax deductions.

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