Being self-employed may feel like a never-ending stream of work, but there are some crucial tax deductions available to these people that can be used to reduce taxable income and overall tax liability.
Partner Jim Daniels said one of the common ones is a business trip, where the incurred expenses may be deductible. "Generally travel from one business location to another is deductible as well as any travel (plane, train or automobile) to business conventions, client meetings or prospective client pitches," he said. Important to note, though, is only business-related travel and expenses qualify. Personal trips or expenses during the time period are not deductible.
In addition, Daniels said, "Interest expense that is related to a freelancer's trade or business should be fully deductible. This does not include any interest related to personal expenditures or investments." This means loans or credit lines that financed a business purchase would qualify for the deduction. He suggested keeping separate credit cards or lines of credit in order to keep personal and business expenses separate to avoid confusing personal expenses with business expenses.
Read the full article published by Business Insider.