Virtual Assistant Forums | Work from Home

Norma · #1 (**permalink**) 09-30-2009

I would like to put that I am a tax deductible business expense in my website if it is a benefit for my clients. I think I am correct, but do not have a reliable source to reference.

I have looked at other sites, and some have that they are tax deductible as a business expense, and others do not mention it.

I guess I will call the IRS tomorrow and ask, but wondered if any of you had any thoughts about this - I want to make sure I am giving correct information in my website, and I cannot find anything definitive on the web tonight about it, and I would also like to be able to reference my source on my site.

Thanks for any help ~ Norma

Business-Bytes · #2 (**permalink**) 09-30-2009

Actual business related expenses are tax deductible. That includes our services for their business. They pay you for doing business tasks and projects, they can deduct your fees. It would be no different than when they hire an accountant, bookkeeper, or office cleaning service, or pay building rent, utilities, supplies, or anything else that is strictly related to their business. It is deductible.

Take for example if they wanted you to do some personal tasks, such as managing their personal email or balancing their checkbook. Then it is NOT deductible.

This might help to get you started: http://www.irs.gov/publications/p535/ch01.html
"What Can I Deduct?
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary."

There are other publications listed at the above link that you can download or view that might be useful.

Hope that helps a bit,

Norma · #3 (**permalink**) 10-01-2009

Jules, once again to the rescue.

I talked to a mentor at SCORE today and he told me the same thing. I had not had time to check the boards before I left for my meeting this morning. I am going to list that in my benefits for clients and in my elevator speech as well.

Thanks for the IRS Pub. I ran by my downtown IRS branch and grabbed one earlier today since I was in town anyway. I grabbed so many I had to get a box to get them out of there. I probably will not read all of them, but at least I have them for reference!!

A little overkill never hurt anyone...right?

thanks again - you are a fountain of information