Originally Posted by Michael Geist Yard Works
That is the beauty of it. We deduct so many things that others can not. From our vehicle, cell phone, hell home phone if that is your office number, a percentage of almost every home expense is able to be deducted in relation to the percentage of the home that is used for business, our work clothes, gas, internet monthly cost, if we need a new CPU.
These are things that others simply can not do.....so while I have overhead....and it is a bad thing....it is also a good thing too. Essentially it is the governments way of rewarding us for being job creators.
In short we get to deduct many everyday cost that we would have anyway...for simply being in business, you think your neighbor would not enjoy not having to pay income tax on what his/her car payment is a year? That is of course if you are not looking to make your income look amazing to someone on paper such as a bank...then these deductions can essentially limit you as well if you have not balanced yourself appropriately, essentially you must pay the piper one way or the other.
Exactly. Put new set of tires and brake pads this year which will be able to be deducted. So yea, it is an expense, but a fully deductible one.
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