Micro-Entrepreneurship For Dummies

Part IV

Considering Taxes and Legal Issues

 Five Tax Deductions That Can Offer Savings on Your Tax Bill

Business meals: A business meal can be tax-deductible (with some limitations). To make it a business meal, you need to conduct business during the meal (such as talking with potential clients). You also must document it (with a receipt, details about who you had the meal with, what business was conducted, and so on).

Auto expenses: Whether you’re traveling to a business conference on the other side of the state or doing a business errand on the other side of town, the business usage (parking, tolls, wear and tear on the vehicle, and so on) is tax-deductible. If you use mass transit (bus, taxi, or train), you can also deduct the business usage portion of that cost.

Home office expense: If you regularly and exclusively use a portion of your home for a home office for your business, then you can deduct those business-related expenses, which can include a portion of your mortgage interest, real estate taxes, and property insurance (or your rent, if you’re a renter), along with a ...