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Taxslayer login 5. Taxslayer login   How To Get Tax Help Table of Contents Go online, use a smart phone, call or walk in to an office near you. Taxslayer login Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Taxslayer login Free help with your tax return. Taxslayer login    Free help in preparing your return is available nationwide from IRS-certified volunteers. Taxslayer login The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Taxslayer login The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Taxslayer login Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Taxslayer login Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Taxslayer login To find the nearest VITA or TCE site, visit IRS. Taxslayer login gov or call 1-800-906-9887. Taxslayer login   As part of the TCE program, AARP offers the Tax-Aide counseling program. Taxslayer login To find the nearest AARP Tax-Aide site, visit AARP's website at www. Taxslayer login aarp. Taxslayer login org/money/taxaide or call 1-888-227-7669. Taxslayer login   For more information on these programs, go to IRS. Taxslayer login gov and enter “VITA” in the search box. Taxslayer login Internet. Taxslayer login IRS. Taxslayer login gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Taxslayer login Apply for an Employer Identification Number (EIN). Taxslayer login Go to IRS. Taxslayer login gov and enter Apply for an EIN in the search box. Taxslayer login Request an Electronic Filing PIN by going to IRS. Taxslayer login gov and entering Electronic Filing PIN in the search box. Taxslayer login Check the status of your 2013 refund with Where's My Refund? Go to IRS. Taxslayer login gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Taxslayer login If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Taxslayer login Check the status of your amended return. Taxslayer login Go to IRS. Taxslayer login gov and enter Where's My Amended Return in the search box. Taxslayer login Download forms, instructions, and publications, including some accessible versions. Taxslayer login Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Taxslayer login gov or IRS2Go. Taxslayer login Tax return and tax account transcripts are generally available for the current year and past three years. Taxslayer login Figure your income tax withholding with the IRS Withholding Calculator on IRS. Taxslayer login gov. Taxslayer login Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Taxslayer login Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Taxslayer login gov. Taxslayer login Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Taxslayer login gov or IRS2Go. Taxslayer login Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Taxslayer login An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Taxslayer login Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Taxslayer login If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Taxslayer login Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Taxslayer login Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Taxslayer login gov. Taxslayer login Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Taxslayer login The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Taxslayer login Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Taxslayer login AARP offers the Tax-Aide counseling program as part of the TCE program. Taxslayer login Visit AARP's website to find the nearest Tax-Aide location. Taxslayer login Research your tax questions. Taxslayer login Search publications and instructions by topic or keyword. Taxslayer login Read the Internal Revenue Code, regulations, or other official guidance. Taxslayer login Read Internal Revenue Bulletins. Taxslayer login Sign up to receive local and national tax news by email. Taxslayer login Phone. Taxslayer login You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Taxslayer login Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Taxslayer login Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Taxslayer login Call to locate the nearest volunteer help site, 1-800-906-9887. Taxslayer login Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Taxslayer login The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Taxslayer login Most VITA and TCE sites offer free electronic filing. Taxslayer login Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Taxslayer login Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Taxslayer login Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Taxslayer login The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Taxslayer login If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Taxslayer login Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Taxslayer login Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Taxslayer login Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Taxslayer login Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Taxslayer login Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Taxslayer login You should receive your order within 10 business days. Taxslayer login Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Taxslayer login Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Taxslayer login Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Taxslayer login Call to ask tax questions, 1-800-829-1040. Taxslayer login Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Taxslayer login The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Taxslayer login These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Taxslayer login gsa. Taxslayer login gov/fedrelay. Taxslayer login Walk-in. Taxslayer login You can find a selection of forms, publications and services — in-person, face-to-face. Taxslayer login Products. Taxslayer login You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Taxslayer login Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Taxslayer login Services. Taxslayer login You can walk in to your local TAC most business days for personal, face-to-face tax help. Taxslayer login An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Taxslayer login If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Taxslayer login No appointment is necessary—just walk in. Taxslayer login Before visiting, check www. Taxslayer login irs. Taxslayer login gov/localcontacts for hours of operation and services provided. Taxslayer login Mail. Taxslayer login You can send your order for forms, instructions, and publications to the address below. Taxslayer login You should receive a response within 10 business days after your request is received. Taxslayer login  Internal Revenue Service 1201 N. Taxslayer login Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Taxslayer login    The Taxpayer Advocate Service (TAS) is your voice at the IRS. Taxslayer login Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Taxslayer login What can TAS do for you?    We can offer you free help with IRS problems that you can't resolve on your own. Taxslayer login We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Taxslayer login You face (or your business is facing) an immediate threat of adverse action. Taxslayer login You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Taxslayer login   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Taxslayer login Here's why we can help: TAS is an independent organization within the IRS. Taxslayer login Our advocates know how to work with the IRS. Taxslayer login Our services are free and tailored to meet your needs. Taxslayer login We have offices in every state, the District of Columbia, and Puerto Rico. Taxslayer login How can you reach us?    If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Taxslayer login irs. Taxslayer login gov/advocate, or call us toll-free at 1-877-777-4778. Taxslayer login How else does TAS help taxpayers?    TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Taxslayer login If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Taxslayer login irs. Taxslayer login gov/sams. Taxslayer login Low Income Taxpayer Clinics. Taxslayer login    Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Taxslayer login Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Taxslayer login Visit www. Taxslayer login TaxpayerAdvocate. Taxslayer login irs. Taxslayer login gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Taxslayer login Prev  Up  Next   Home   More Online Publications
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Understanding Your CP301 Notice

We sent you this notice to inform that you visited IRS online services website and went through Identity Verification process.


What you need to do

  • If you created a User ID and Password
    • Your User ID and password are required each time you access one of our online services.
    • Keep your registration profile data current. We will send you a confirmation email each time you update your profile.
  • If you accessed IRS Online Services as a GUEST USER
    • You must enter the requested information every time you access online services.
  • If you received an activation code with the notice, go to www.irs.gov/onlineservices, sign in and enter your activation code to complete your online registration.
    • Your activation code will expire 30 days after the date noted on your CP301 Notice.

Answers to Common Questions

Q. What is an activation code and what if I didn’t get my activation code in the notice?

A. Activation code is an 8 digit code required to activate your account to access certain online services. Not all online service access requires activation code. If activation code is not present in your notice, you can continue to use the service with your userid and password.

Q. What happens if my activation code sent in the notice does not work?

A. You can go to online services, use your userid and password to request for a new activation code. Please allow for 30 days for the activation code to arrive before you request a new activation code.

Q. I forgot my userid and password that I created online, can I use the system?

A. You can go to online services website and retrieve your userid and password.

Q. How long is my online service account valid?

A. Your online service account is valid as long as you are an active user. IRS periodically request users to provide information to revalidate.

Q. Can I use the same user id and password that I created on the online services web site for all IRS services?

A. The same user id and password can be used to access all services that currently offered by IRS Online Service.

Page Last Reviewed or Updated: 14-Feb-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Taxslayer Login

Taxslayer login 8. Taxslayer login   Business Expenses Table of Contents Introduction Useful Items - You may want to see: Bad DebtsAccrual method. Taxslayer login Cash method. Taxslayer login Car and Truck ExpensesOffice in the home. Taxslayer login Methods for Deducting Car and Truck Expenses Reimbursing Your Employees for Expenses Depreciation Employees' PayFringe benefits. Taxslayer login InsuranceHow to figure the deduction. Taxslayer login Interest Legal and Professional FeesTax preparation fees. Taxslayer login Pension Plans Rent Expense Taxes Travel, Meals, and EntertainmentTransportation. Taxslayer login Taxi, commuter bus, and limousine. Taxslayer login Baggage and shipping. Taxslayer login Car or truck. Taxslayer login Meals and lodging. Taxslayer login Cleaning. Taxslayer login Telephone. Taxslayer login Tips. Taxslayer login More information. Taxslayer login Business Use of Your HomeExceptions to exclusive use. Taxslayer login Other Expenses You Can Deduct Expenses You Cannot Deduct Introduction You can deduct the costs of operating your business. Taxslayer login These costs are known as business expenses. Taxslayer login These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year. Taxslayer login To be deductible, a business expense must be both ordinary and necessary. Taxslayer login An ordinary expense is one that is common and accepted in your field of business. Taxslayer login A necessary expense is one that is helpful and appropriate for your business. Taxslayer login An expense does not have to be indispensable to be considered necessary. Taxslayer login For more information about the general rules for deducting business expenses, see chapter 1 in Publication 535, Business Expenses. Taxslayer login If you have an expense that is partly for business and partly personal, separate the personal part from the business part. Taxslayer login The personal part is not deductible. Taxslayer login Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 946 How To Depreciate Property See chapter 12 for information about getting publications and forms. Taxslayer login Bad Debts If someone owes you money you cannot collect, you have a bad debt. Taxslayer login There are two kinds of bad debts, business bad debts and nonbusiness bad debts. Taxslayer login A business bad debt is generally one that comes from operating your trade or business. Taxslayer login You may be able to deduct business bad debts as an expense on your business tax return. Taxslayer login Business bad debt. Taxslayer login   A business bad debt is a loss from the worthlessness of a debt that was either of the following. Taxslayer login Created or acquired in your business. Taxslayer login Closely related to your business when it became partly or totally worthless. Taxslayer login A debt is closely related to your business if your primary motive for incurring the debt is a business reason. Taxslayer login   Business bad debts are mainly the result of credit sales to customers. Taxslayer login They can also be the result of loans to suppliers, clients, employees, or distributors. Taxslayer login Goods and services customers have not paid for are shown in your books as either accounts receivable or notes receivable. Taxslayer login If you are unable to collect any part of these accounts or notes receivable, the uncollectible part is a business bad debt. Taxslayer login    You can take a bad debt deduction for these accounts and notes receivable only if the amount you were owed was included in your gross income either for the year the deduction is claimed or for a prior year. Taxslayer login Accrual method. Taxslayer login   If you use an accrual method of accounting, you normally report income as you earn it. Taxslayer login You can take a bad debt deduction for an uncollectible receivable if you have included the uncollectible amount in income. Taxslayer login Cash method. Taxslayer login   If you use the cash method of accounting, you normally report income when you receive payment. Taxslayer login You cannot take a bad debt deduction for amounts owed to you that you have not received and cannot collect if you never included those amounts in income. Taxslayer login More information. Taxslayer login   For more information about business bad debts, see chapter 10 in Publication 535. Taxslayer login Nonbusiness bad debts. Taxslayer login   All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040). Taxslayer login For more information on nonbusiness bad debts, see Publication 550, Investment Income and Expenses. Taxslayer login Car and Truck Expenses If you use your car or truck in your business, you may be able to deduct the costs of operating and maintaining your vehicle. Taxslayer login You also may be able to deduct other costs of local transportation and traveling away from home overnight on business. Taxslayer login You may qualify for a tax credit for qualified plug-in electric vehicles, qualified plug-in electric drive motor vehicles, and alternative motor vehicles you place in service during the year. Taxslayer login See Form 8936 and Form 8910 for more information. Taxslayer login Local transportation expenses. Taxslayer login   Local transportation expenses include the ordinary and necessary costs of all the following. Taxslayer login Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Taxslayer login Tax home is defined later. Taxslayer login Visiting clients or customers. Taxslayer login Going to a business meeting away from your regular workplace. Taxslayer login Getting from your home to a temporary workplace when you have one or more regular places of work. Taxslayer login These temporary workplaces can be either within the area of your tax home or outside that area. Taxslayer login Local business transportation does not include expenses you have while traveling away from home overnight. Taxslayer login Those expenses are deductible as travel expenses and are discussed later under Travel, Meals, and Entertainment. Taxslayer login However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Taxslayer login   Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Taxslayer login It includes the entire city or general area in which your business or work is located. Taxslayer login Example. Taxslayer login You operate a printing business out of rented office space. Taxslayer login You use your van to deliver completed jobs to your customers. Taxslayer login You can deduct the cost of round-trip transportation between your customers and your print shop. Taxslayer login    You cannot deduct the costs of driving your car or truck between your home and your main or regular workplace. Taxslayer login These costs are personal commuting expenses. Taxslayer login Office in the home. Taxslayer login   Your workplace can be your home if you have an office in your home that qualifies as your principal place of business. Taxslayer login For more information, see Business Use of Your Home, later. Taxslayer login Example. Taxslayer login You are a graphics designer. Taxslayer login You operate your business out of your home. Taxslayer login Your home qualifies as your principal place of business. Taxslayer login You occasionally have to drive to your clients to deliver your completed work. Taxslayer login You can deduct the cost of the round-trip transportation between your home and your clients. Taxslayer login Methods for Deducting Car and Truck Expenses For local transportation or overnight travel by car or truck, you generally can use one of the following methods to figure your expenses. Taxslayer login Standard mileage rate. Taxslayer login Actual expenses. Taxslayer login Standard mileage rate. Taxslayer login   You may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Taxslayer login For 2013, the standard mileage rate is 56. Taxslayer login 5 cents per mile. Taxslayer login    If you choose to use the standard mileage rate for a year, you cannot deduct your actual expenses for that year except for business-related parking fees and tolls. Taxslayer login Choosing the standard mileage rate. Taxslayer login   If you want to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business. Taxslayer login In later years, you can choose to use either the standard mileage rate or actual expenses. Taxslayer login   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Taxslayer login Standard mileage rate not allowed. Taxslayer login   You cannot use the standard mileage rate if you: Operate five or more cars at the same time, Claimed a depreciation deduction using any method other than straight line, for example, ACRS or MACRS, Claimed a section 179 deduction on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Taxslayer login Parking fees and tolls. Taxslayer login   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Taxslayer login (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Taxslayer login ) Actual expenses. Taxslayer login   If you do not choose to use the standard mileage rate, you may be able to deduct your actual car or truck expenses. Taxslayer login    If you qualify to use both methods, figure your deduction both ways to see which gives you a larger deduction. Taxslayer login   Actual car expenses include the costs of the following items. Taxslayer login Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Taxslayer login You can divide your expenses based on the miles driven for each purpose. Taxslayer login Example. Taxslayer login You are the sole proprietor of a flower shop. Taxslayer login You drove your van 20,000 miles during the year. Taxslayer login 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use (including commuting miles). Taxslayer login You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Taxslayer login More information. Taxslayer login   For more information about the rules for claiming car and truck expenses, see Publication 463. Taxslayer login Reimbursing Your Employees for Expenses You generally can deduct the amount you reimburse your employees for car and truck expenses. Taxslayer login The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Taxslayer login For details, see chapter 11 in Publication 535. Taxslayer login That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Taxslayer login Depreciation If property you acquire to use in your business is expected to last more than 1 year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Taxslayer login You must spread the cost over more than 1 tax year and deduct part of it each year on Schedule C. Taxslayer login This method of deducting the cost of business property is called depreciation. Taxslayer login The discussion here is brief. Taxslayer login You will find more information about depreciation in Publication 946. Taxslayer login What property can be depreciated?   You can depreciate property if it meets all the following requirements. Taxslayer login It must be property you own. Taxslayer login It must be used in business or held to produce income. Taxslayer login You never can depreciate inventory (explained in chapter 2) because it is not held for use in your business. Taxslayer login It must have a useful life that extends substantially beyond the year it is placed in service. Taxslayer login It must have a determinable useful life, which means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Taxslayer login You never can depreciate the cost of land because land does not wear out, become obsolete, or get used up. Taxslayer login It must not be excepted property. Taxslayer login This includes property placed in service and disposed of in the same year. Taxslayer login Repairs. Taxslayer login    You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. Taxslayer login You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ. Taxslayer login Depreciation method. Taxslayer login   The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). Taxslayer login MACRS is discussed in detail in Publication 946. Taxslayer login Section 179 deduction. Taxslayer login   You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Taxslayer login This deduction is known as the “section 179 deduction. Taxslayer login ” The maximum amount you can elect to deduct during 2013 is generally $500,000 (higher limits apply to certain property). Taxslayer login See IRC 179(e). Taxslayer login   This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Taxslayer login The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2013 is $3,160 ($11,160 if you take the special depreciation allowance for qualified passenger automobiles placed in service in 2013). Taxslayer login Special rules apply to trucks and vans. Taxslayer login For more information, see Publication 946. Taxslayer login It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction. Taxslayer login    Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. Taxslayer login For more information, see the Instructions for Form 4562 or Publication 946. Taxslayer login Listed property. Taxslayer login   You must follow special rules and recordkeeping requirements when depreciating listed property. Taxslayer login Listed property is any of the following. Taxslayer login Most passenger automobiles. Taxslayer login Most other property used for transportation. Taxslayer login Any property of a type generally used for entertainment, recreation, or amusement. Taxslayer login Certain computers and related peripheral equipment. Taxslayer login   For more information about listed property, see Publication 946. Taxslayer login Form 4562. Taxslayer login   Use Form 4562, Depreciation and Amortization, if you are claiming any of the following. Taxslayer login Depreciation on property placed in service during the current tax year. Taxslayer login A section 179 deduction. Taxslayer login Depreciation on any listed property (regardless of when it was placed in service). Taxslayer login    If you have to use Form 4562, you must file Schedule C. Taxslayer login You cannot use Schedule C-EZ. Taxslayer login   Employees' Pay You can generally deduct on Schedule C the pay you give your employees for the services they perform for your business. Taxslayer login The pay may be in cash, property, or services. Taxslayer login To be deductible, your employees' pay must be an ordinary and necessary expense and you must pay or incur it in the tax year. Taxslayer login In addition, the pay must meet both the following tests. Taxslayer login The pay must be reasonable. Taxslayer login The pay must be for services performed. Taxslayer login Chapter 2 in Publication 535 explains and defines these requirements. Taxslayer login You cannot deduct your own salary or any personal withdrawals you make from your business. Taxslayer login As a sole proprietor, you are not an employee of the business. Taxslayer login If you had employees during the year, you must use Schedule C. Taxslayer login You cannot use Schedule C-EZ. Taxslayer login Kinds of pay. Taxslayer login   Some of the ways you may provide pay to your employees are listed below. Taxslayer login For an explanation of each of these items, see chapter 2 in Publication 535. Taxslayer login Awards. Taxslayer login Bonuses. Taxslayer login Education expenses. Taxslayer login Fringe benefits (discussed later). Taxslayer login Loans or advances you do not expect the employee to repay if they are for personal services actually performed. Taxslayer login Property you transfer to an employee as payment for services. Taxslayer login Reimbursements for employee business expenses. Taxslayer login Sick pay. Taxslayer login Vacation pay. Taxslayer login Fringe benefits. Taxslayer login   A fringe benefit is a form of pay for the performance of services. Taxslayer login The following are examples of fringe benefits. Taxslayer login Benefits under qualified employee benefit programs. Taxslayer login Meals and lodging. Taxslayer login The use of a car. Taxslayer login Flights on airplanes. Taxslayer login Discounts on property or services. Taxslayer login Memberships in country clubs or other social clubs. Taxslayer login Tickets to entertainment or sporting events. Taxslayer login   Employee benefit programs include the following. Taxslayer login Accident and health plans. Taxslayer login Adoption assistance. Taxslayer login Cafeteria plans. Taxslayer login Dependent care assistance. Taxslayer login Educational assistance. Taxslayer login Group-term life insurance coverage. Taxslayer login Welfare benefit funds. Taxslayer login   You can generally deduct the cost of fringe benefits you provide on your Schedule C in whatever category the cost falls. Taxslayer login For example, if you allow an employee to use a car or other property you lease, deduct the cost of the lease as a rent or lease expense. Taxslayer login If you own the property, include your deduction for its cost or other basis as a section 179 deduction or a depreciation deduction. Taxslayer login    You may be able to exclude all or part of the fringe benefits you provide from your employees' wages. Taxslayer login For more information about fringe benefits and the exclusion of benefits, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Taxslayer login Insurance You can generally deduct premiums you pay for the following kinds of insurance related to your business. Taxslayer login Fire, theft, flood, or similar insurance. Taxslayer login Credit insurance that covers losses from business bad debts. Taxslayer login Group hospitalization and medical insurance for employees, including long-term care insurance. Taxslayer login Liability insurance. Taxslayer login Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Taxslayer login Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Taxslayer login Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Taxslayer login Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Taxslayer login Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Taxslayer login If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Taxslayer login If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Taxslayer login Life insurance covering your employees if you are not directly or indirectly the beneficiary under the contract. Taxslayer login Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Taxslayer login Nondeductible premiums. Taxslayer login   You cannot deduct premiums on the following kinds of insurance. Taxslayer login Self-insurance reserve funds. Taxslayer login You cannot deduct amounts credited to a reserve set up for self-insurance. Taxslayer login This applies even if you cannot get business insurance coverage for certain business risks. Taxslayer login However, your actual losses may be deductible. Taxslayer login For more information, see Publication 547, Casualties, Disasters, and Thefts. Taxslayer login Loss of earnings. Taxslayer login You cannot deduct premiums for a policy that pays for your lost earnings due to sickness or disability. Taxslayer login However, see item (8) in the previous list. Taxslayer login Certain life insurance and annuities. Taxslayer login For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Taxslayer login You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Taxslayer login A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Taxslayer login For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Taxslayer login The disallowance applies without regard to whom the policy covers. Taxslayer login Insurance to secure a loan. Taxslayer login If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Taxslayer login Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Taxslayer login In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. Taxslayer login Self-employed health insurance deduction. Taxslayer login   You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for you and your family. Taxslayer login How to figure the deduction. Taxslayer login   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Taxslayer login However, if any of the following apply, you must use the worksheet in chapter 6 of Publication 535. Taxslayer login You have more than one source of income subject to self-employment tax. Taxslayer login You file Form 2555 or Form 2555-EZ (relating to foreign earned income). Taxslayer login You are using amounts paid for qualified long-term care insurance to figure the deduction. Taxslayer login Prepayment. Taxslayer login   You cannot deduct expenses in advance, even if you pay them in advance. Taxslayer login This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Taxslayer login Example. Taxslayer login In 2013, you signed a 3-year insurance contract. Taxslayer login Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Taxslayer login You can deduct in 2014 and 2015 the premium allocable to those years. Taxslayer login More information. Taxslayer login   For more information about deducting insurance, see chapter 6 in Publication 535. Taxslayer login Interest You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your business. Taxslayer login Interest relates to your business if you use the proceeds of the loan for a business expense. Taxslayer login It does not matter what type of property secures the loan. Taxslayer login You can deduct interest on a debt only if you meet all of the following requirements. Taxslayer login You are legally liable for that debt. Taxslayer login Both you and the lender intend that the debt be repaid. Taxslayer login You and the lender have a true debtor-creditor relationship. Taxslayer login You cannot deduct on Schedule C or C-EZ the interest you paid on personal loans. Taxslayer login If a loan is part business and part personal, you must divide the interest between the personal part and the business part. Taxslayer login Example. Taxslayer login In 2013, you paid $600 interest on a car loan. Taxslayer login During 2013, you used the car 60% for business and 40% for personal purposes. Taxslayer login You are claiming actual expenses on the car. Taxslayer login You can only deduct $360 (60% × $600) for 2013 on Schedule C or C-EZ. Taxslayer login The remaining interest of $240 is a nondeductible personal expense. Taxslayer login More information. Taxslayer login   For more information about deducting interest, see chapter 4 in Publication 535. Taxslayer login That chapter explains the following items. Taxslayer login Interest you can deduct. Taxslayer login Interest you cannot deduct. Taxslayer login How to allocate interest between personal and business use. Taxslayer login When to deduct interest. Taxslayer login The rules for a below-market interest rate loan. Taxslayer login (This is generally a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Taxslayer login ) Legal and Professional Fees Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible on Schedule C or C-EZ. Taxslayer login However, you usually cannot deduct legal fees you pay to acquire business assets. Taxslayer login Add them to the basis of the property. Taxslayer login If the fees include payments for work of a personal nature (such as making a will), you can take a business deduction only for the part of the fee related to your business. Taxslayer login The personal part of legal fees for producing or collecting taxable income, doing or keeping your job, or for tax advice may be deductible on Schedule A (Form 1040) if you itemize deductions. Taxslayer login For more information, see Publication 529, Miscellaneous Deductions. Taxslayer login Tax preparation fees. Taxslayer login   You can deduct on Schedule C or C-EZ the cost of preparing that part of your tax return relating to your business as a sole proprietor or statutory employee. Taxslayer login You can deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. Taxslayer login   You can also deduct on Schedule C or C-EZ the amount you pay or incur in resolving asserted tax deficiencies for your business as a sole proprietor or statutory employee. Taxslayer login Pension Plans You can set up and maintain the following small business retirement plans for yourself and your employees. Taxslayer login SEP (Simplified Employee Pension) plans. Taxslayer login SIMPLE (Savings Incentive Match Plan for Employees) plans. Taxslayer login Qualified plans (including Keogh or H. Taxslayer login R. Taxslayer login 10 plans). Taxslayer login SEP, SIMPLE, and qualified plans offer you and your employees a tax favored way to save for retirement. Taxslayer login You can deduct contributions you make to the plan for your employees on line 19 of Schedule C. Taxslayer login If you are a sole proprietor, you can deduct contributions you make to the plan for yourself on line 28 of Form 1040. Taxslayer login You can also deduct trustees' fees if contributions to the plan do not cover them. Taxslayer login Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Taxslayer login You may also be able to claim a tax credit of 50% of the first $1,000 of qualified startup costs if you begin a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. Taxslayer login Under certain plans, employees can have you contribute limited amounts of their before-tax pay to a plan. Taxslayer login These amounts (and earnings on them) are generally tax free until your employees receive distributions from the plan. Taxslayer login For more information on retirement plans for small business, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Taxslayer login Publication 590, Individual Retirement Arrangements (IRAs), discusses other tax favored ways to save for retirement. Taxslayer login Rent Expense Rent is any amount you pay for the use of property you do not own. Taxslayer login In general, you can deduct rent as a business expense only if the rent is for property you use in your business. Taxslayer login If you have or will receive equity in or title to the property, you cannot deduct the rent. Taxslayer login Unreasonable rent. Taxslayer login   You cannot take a rental deduction for unreasonable rents. Taxslayer login Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Taxslayer login Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Taxslayer login Rent is not unreasonable just because it is figured as a percentage of gross receipts. Taxslayer login   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. Taxslayer login For a list of the other related persons, see section 267 of the Internal Revenue Code. Taxslayer login Rent on your home. Taxslayer login   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Taxslayer login You must meet the requirements for business use of your home. Taxslayer login For more information, see Business Use of Your Home , later. Taxslayer login Rent paid in advance. Taxslayer login   Generally, rent paid in your business is deductible in the year paid or accrued. Taxslayer login If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Taxslayer login You can deduct the rest of your payment only over the period to which it applies. Taxslayer login More information. Taxslayer login   For more information about rent, see chapter 3 in Publication 535. Taxslayer login Taxes You can deduct on Schedule C or C-EZ various federal, state, local, and foreign taxes directly attributable to your business. Taxslayer login Income taxes. Taxslayer login   You can deduct on Schedule C or C-EZ a state tax on gross income (as distinguished from net income) directly attributable to your business. Taxslayer login You can deduct other state and local income taxes on Schedule A (Form 1040) if you itemize your deductions. Taxslayer login Do not deduct federal income tax. Taxslayer login Employment taxes. Taxslayer login   You can deduct the social security, Medicare, and federal unemployment (FUTA) taxes you paid out of your own funds as an employer. Taxslayer login Employment taxes are discussed briefly in chapter 1. Taxslayer login You can also deduct payments you made as an employer to a state unemployment compensation fund or to a state disability benefit fund. Taxslayer login Deduct these payments as taxes. Taxslayer login Self-employment tax. Taxslayer login   You can deduct one-half of your self-employment tax on line 27 of Form 1040. Taxslayer login Self-employment tax is discussed in chapters 1 and 10. Taxslayer login Personal property tax. Taxslayer login   You can deduct on Schedule C or C-EZ any tax imposed by a state or local government on personal property used in your business. Taxslayer login   You can also deduct registration fees for the right to use property within a state or local area. Taxslayer login Example. Taxslayer login May and Julius Winter drove their car 7,000 business miles out of a total of 10,000 miles. Taxslayer login They had to pay $25 for their annual state license tags and $20 for their city registration sticker. Taxslayer login They also paid $235 in city personal property tax on the car, for a total of $280. Taxslayer login They are claiming their actual car expenses. Taxslayer login Because they used the car 70% for business, they can deduct 70% of the $280, or $196, as a business expense. Taxslayer login Real estate taxes. Taxslayer login   You can deduct on Schedule C or C-EZ the real estate taxes you pay on your business property. Taxslayer login Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Taxslayer login The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Taxslayer login   For more information about real estate taxes, see chapter 5 in Publication 535. Taxslayer login That chapter explains special rules for deducting the following items. Taxslayer login Taxes for local benefits, such as those for sidewalks, streets, water mains, and sewer lines. Taxslayer login Real estate taxes when you buy or sell property during the year. Taxslayer login Real estate taxes if you use an accrual method of accounting and choose to accrue real estate tax related to a definite period ratably over that period. Taxslayer login Sales tax. Taxslayer login   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Taxslayer login If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Taxslayer login If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Taxslayer login If the property is depreciable, add the sales tax to the basis for depreciation. Taxslayer login For information on the basis of property, see Publication 551, Basis of Assets. Taxslayer login    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Taxslayer login Do not include these taxes in gross receipts or sales. Taxslayer login Excise taxes. Taxslayer login   You can deduct on Schedule C or C-EZ all excise taxes that are ordinary and necessary expenses of carrying on your business. Taxslayer login Excise taxes are discussed briefly in chapter 1. Taxslayer login Fuel taxes. Taxslayer login   Taxes on gasoline, diesel fuel, and other motor fuels you use in your business are usually included as part of the cost of the fuel. Taxslayer login Do not deduct these taxes as a separate item. Taxslayer login   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Taxslayer login For more information, see Publication 510, Excise Taxes. Taxslayer login Travel, Meals, and Entertainment This section briefly explains the kinds of travel and entertainment expenses you can deduct on Schedule C or C-EZ. Taxslayer login Table 8-1. Taxslayer login When Are Entertainment Expenses Deductible? (Note. Taxslayer login The following is a summary of the rules for deducting entertainment expenses. Taxslayer login For more details about these rules, see Publication 463. Taxslayer login ) General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Taxslayer login Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Taxslayer login An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Taxslayer login A necessary expense is one that is helpful and appropriate, although not necessarily required, for your business. Taxslayer login Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Taxslayer login   Associated test Entertainment is associated with your trade or business, and Entertainment directly precedes or follows a substantial business discussion. Taxslayer login Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Taxslayer login You cannot deduct expenses that are lavish or extravagant under the circumstances. Taxslayer login You generally can deduct only 50% of your unreimbursed entertainment expenses. Taxslayer login Travel expenses. Taxslayer login   These are the ordinary and necessary expenses of traveling away from home for your business. Taxslayer login You are traveling away from home if both the following conditions are met. Taxslayer login Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work. Taxslayer login You need to get sleep or rest to meet the demands of your work while away from home. Taxslayer login Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Taxslayer login It includes the entire city or general area in which your business is located. Taxslayer login See Publication 463 for more information. Taxslayer login   The following is a brief discussion of the expenses you can deduct. Taxslayer login Transportation. Taxslayer login   You can deduct the cost of travel by airplane, train, bus, or car between your home and your business destination. Taxslayer login Taxi, commuter bus, and limousine. Taxslayer login   You can deduct fares for these and other types of transportation between the airport or station and your hotel, or between the hotel and your work location away from home. Taxslayer login Baggage and shipping. Taxslayer login   You can deduct the cost of sending baggage and sample or display material between your regular and temporary work locations. Taxslayer login Car or truck. Taxslayer login   You can deduct the costs of operating and maintaining your vehicle when traveling away from home on business. Taxslayer login You can deduct actual expenses or the standard mileage rate (discussed earlier under Car and Truck Expenses), as well as business-related tolls and parking. Taxslayer login If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Taxslayer login Meals and lodging. Taxslayer login   You can deduct the cost of meals and lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Taxslayer login In most cases, you can deduct only 50% of your meal expenses. Taxslayer login Cleaning. Taxslayer login   You can deduct the costs of dry cleaning and laundry while on your business trip. Taxslayer login Telephone. Taxslayer login   You can deduct the cost of business calls while on your business trip, including business communication by fax machine or other communication devices. Taxslayer login Tips. Taxslayer login   You can deduct the tips you pay for any expense in this list. Taxslayer login More information. Taxslayer login   For more information about travel expenses, see Publication 463. Taxslayer login Entertainment expenses. Taxslayer login   You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee. Taxslayer login In most cases, you can deduct only 50% of these expenses. Taxslayer login   The following are examples of entertainment expenses. Taxslayer login Entertaining guests at nightclubs, athletic clubs, theaters, or sporting events. Taxslayer login Providing meals, a hotel suite, or a car to business customers or their families. Taxslayer login To be deductible, the expenses must meet the rules listed in Table 8-1. Taxslayer login For details about these rules, see Publication 463. Taxslayer login Reimbursing your employees for expenses. Taxslayer login   You generally can deduct the amount you reimburse your employees for travel and entertainment expenses. Taxslayer login The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Taxslayer login For details, see chapter 11 in Publication 535. Taxslayer login That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Taxslayer login Business Use of Your Home To deduct expenses related to the part of your home used for business, you must meet specific requirements. Taxslayer login Even then, your deduction may be limited. Taxslayer login To qualify to claim expenses for business use of your home, you must meet the following tests. Taxslayer login Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use , later), Regular, For your business, and The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your business, or A separate structure (not attached to your home) you use in connection with your business. Taxslayer login Exclusive use. Taxslayer login   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Taxslayer login The area used for business can be a room or other separately identifiable space. Taxslayer login The space does not need to be marked off by a permanent partition. Taxslayer login   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Taxslayer login Example. Taxslayer login You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. Taxslayer login Your family also uses the den for recreation. Taxslayer login The den is not used exclusively in your profession, so you cannot claim a business deduction for its use. Taxslayer login Exceptions to exclusive use. Taxslayer login   You do not have to meet the exclusive use test if you use part of your home in either of the following ways. Taxslayer login For the storage of inventory or product samples. Taxslayer login As a daycare facility. Taxslayer login For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Taxslayer login Regular use. Taxslayer login   To qualify under the regular use test, you must use a specific area of your home for business on a continuing basis. Taxslayer login You do not meet the test if your business use of the area is only occasional or incidental, even if you do not use that area for any other purpose. Taxslayer login Principal place of business. Taxslayer login   You can have more than one business location, including your home, for a single trade or business. Taxslayer login To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that business. Taxslayer login To determine your principal place of business, you must consider all the facts and circumstances. Taxslayer login   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Taxslayer login You use it exclusively and regularly for administrative or management activities of your business. Taxslayer login You have no other fixed location where you conduct substantial administrative or management activities of your business. Taxslayer login   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Taxslayer login The relative importance of the activities performed at each location. Taxslayer login If the relative importance factor does not determine your principal place of business, you can also consider the time spent at each location. Taxslayer login   If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Taxslayer login However, for other ways to qualify to deduct home office expenses, see Publication 587. Taxslayer login Deduction limit. Taxslayer login   If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. Taxslayer login If your gross income from the business use is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. Taxslayer login   Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation (with depreciation taken last), allocable to the business is limited to the gross income from the business use of your home minus the sum of the following. Taxslayer login The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). Taxslayer login The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. Taxslayer login Do not include in (2) above your deduction for one-half of your self-employment tax. Taxslayer login   Use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Taxslayer login New simplified method. Taxslayer login    The IRS now provides a simplified method to determine your expenses for business use of your home. Taxslayer login The simplified method is an alternative to calculating and substantiating actual expenses. Taxslayer login In most cases, you will figure your deduction by multiplying $5 by the area of your home used for a qualified business use. Taxslayer login The area you use to figure your deduction is limited to 300 square feet. Taxslayer login For more information, see the Instructions for Schedule C. Taxslayer login More information. Taxslayer login   For more information on deducting expenses for the business use of your home, see Publication 587. Taxslayer login Other Expenses You Can Deduct You may also be able to deduct the following expenses. Taxslayer login See Publication 535 to find out whether you can deduct them. Taxslayer login Advertising. Taxslayer login Bank fees. Taxslayer login Donations to business organizations. Taxslayer login Education expenses. Taxslayer login Energy efficient commercial buildings deduction expenses. Taxslayer login Impairment-related expenses. Taxslayer login Interview expense allowances. Taxslayer login Licenses and regulatory fees. Taxslayer login Moving machinery. Taxslayer login Outplacement services. Taxslayer login Penalties and fines you pay for late performance or nonperformance of a contract. Taxslayer login Repairs that keep your property in a normal efficient operating condition. Taxslayer login Repayments of income. Taxslayer login Subscriptions to trade or professional publications. Taxslayer login Supplies and materials. Taxslayer login Utilities. Taxslayer login Expenses You Cannot Deduct You usually cannot deduct the following as business expenses. Taxslayer login For more information, see Publication 535. Taxslayer login Bribes and kickbacks. Taxslayer login Charitable contributions. Taxslayer login Demolition expenses or losses. Taxslayer login Dues to business, social, athletic, luncheon, sporting, airline, and hotel clubs. Taxslayer login Lobbying expenses. Taxslayer login Penalties and fines you pay to a governmental agency or instrumentality because you broke the law. Taxslayer login Personal, living, and family expenses. Taxslayer login Political contributions. Taxslayer login Repairs that add to the value of your property or significantly increase its life. Taxslayer login Prev  Up  Next   Home   More Online Publications