Peleg's Note: Here is the final post in the series, How to Take Advantage of Every Possible business expense by June Walker, tax and financial consultant to independent professionals since 1979. June will be one of our speakers at the next Creative Freelancer Conference, this August in San Diego!
The second way to take advantage of every possible business expense is:
Review your relationship to the people you spend your time with. Anyone who has a connection with your business may be primarily a business associate even though in some cases he or she may also happen to be a college classmate, friend, parent, child, or spouse. Friendship with a business associate is not necessarily fatal to a deduction. You'll just have to show that the predominant motive for the activity that warranted the expense was business-related.
Faye Fabrique deducts not only the fabric paints that she buys, but also the expense of dining out with her husband. Why? Because during the meal she gets his advice on questions of scheduling, picks his brain about various proposals, and tests his reaction to her brochure. She could not have had this business discussion at the family dinner table with her three children in attendance and so the gift given to her brother as thanks for baby-sitting while she was at this dinner is also a business expense.
Think like a business. Take every deduction possible. And please, visit here to get your complimentary list of self-employed business deductions?
I wish you success with your indie business and I look forward to seeing you in August.