We previously shared common 1099 deductions, so in preparation for tax season, we wanted to share 1099 write-offs you probably didn’t know about. 1099 Write-Offs You Probably Didn’t Know About Business startup and organizational costs If you started your business this year, you can write off many expenses associated with starting your business. In business terms, these are known as startup costs. In tax terms, these are known as investigation costs. Startup costs include: Advertising Acquiring an existing business Consultant fees Customer surveys Equipment costs Leasing a business property Market research Product research Site selection costs Wages and salaries for training Similarly, you can also deduct many organizational costs. These are the costs of forming your organization – specifically, a corporation, LLC, or partnership. Organizational costs include: Accounting fees Legal fees Organizational meetings Partnership filing or incorporation fees Temporary directors To deduct the costs above, make sure the fees you are writing off are only applicable to forming your organization. Other accounting or legal fees do not apply here. Cell Phone Costs If you use your cell phone for personal and business purposes, then you can deduct a portion of your cell phone bill costs from your taxes. To do this, estimate the percentage of your cell phone plan that is used for business purposes, and then write off that percentage. You can review your phone usage for a typical month and then average that for the entire year. Commission and Fees Some commissions and fees can be written off. However, when and how they can be deducted varies. Commissions and fees that are considered capital expenses must be amortized, which means spreading them out over 15 years, which includes these types of commissions and fees: Getting a lease on a business property Issuing and selling stock or securities …
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