What can I write off? Part 1

In this episode, Jeff discusses:

• The importance of having a good accounting system
• The biggest questions to ask yourself about business expenses
• What is the difference between advertising, marketing, and promotional?
• Good records is key.

Key Takeaways:

• It will take you less time if you utilize a good accounting system to go through your credit card statements every month, prepare your monthly P&L, and try to find all the expenses.
• The biggest question when it comes to business expenses is to ask yourself is this business related? Second question would be what would I pay for this if it was for my employee? These two questions will help you answer a lot of what you can and can't write off.
• Depending on what you do with your tax return, advertising, marketing, and promotional are all options. The key is to have all your expenses listed somewhere and the numbers are accurate.
• It is important to keep an odometer statement at the beginning of each year so that you can prove that you have put the miles on that particular vehicle, and you should keep a mileage log that shows all the miles you put on for the year.

“As a tax guy, we have what's called an organizer, and we need it completed. But most of the time people complain about it. But how do you expect us to get the information that we need to make sure that we have everything to complete your tax return?" —  Jeff Hockett

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