In order to claim an
employee business expense deduction, your business expenses must be more than 2 % of your adjusted gross income for it to even register on your tax return.
If you're a salesperson who claims employee
business expense deductions on your tax return, you're much more likely to be hit with AMT than a person who doesn't.
But Luscombe noted that taxpayers should keep in mind that «
business expense deductions can only be taken once, either on your individual income - tax return or a separate business tax return — but not on both.»
This provides more support for
your business expense deductions.
For purposes of
a business expense deduction, does it matter that 500 GB of the 600 GB is for personal use, or does it only matter that all of the $ 100 was paid in order to get the extra 100 GB for business use?
Sure, you want to maximize
your business expense deductions, but in the end, whether your error is intentional or not, this fraudulent action carries heavy fines and penalties.
The recently enacted Tax Cuts and Jobs Act eliminated
a business expense deduction for settlements of sexual harassment and sexual abuse claims that are subject to confidentiality restrictions.
Although the tax code can be confusing, and you can spend your entire lifetime trying to understand it, no business owner should get started without knowing the ins and outs of
the business expense deduction.