How to Deduct Business Travel

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Today, I’m talking about an important topic for entrepreneurs: business travel and deducting business travel on your taxes. I’m highlighting the importance of understanding the rules for deducting transportation costs, accommodations, and meals, and sharing how you can properly document your travel so you can avoid getting audited by the IRS.

Join me in this important episode to learn how you can distinguish between what’s deductible and what’s non-deductible when it comes to business travel expenses.

Also mentioned in today’s episode: 

• Mixing personal elements with business travel and how to deduct properly 8:05

• The 4 qualifications for deducting foreign travel costs 17:40

• Deducting travel costs for inspiration without getting audited 27:15

If you enjoyed this episode, please rate, review and share it! 

Links:

Right Back to It, Waxahatchee featuring MJ Lenderman

Free 20 Minute Course on Filing your BOI Report for LLCs: www.sunlighttax.com/llc

IRS Proof Your Business Deductions

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Startup Expenses: A Perk for Your New Business

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In today’s episode, I’m diving into the topic of startup expenses, the deductions available for new businesses and some of the benefits the tax code provides to new businesses. I give examples of qualifying startup expenses and sharing some information on when you can deduct these expenses on your taxes. 

Listen to this episode to get helpful guidance on taking advantage of tax deductions available in the early stages of a new business.

Also mentioned in today’s episode:  

• What are startup expenses 8:00

• What’s included in the startup expenses according to the IRS 10:05

• When can you deduct your expenses on your taxes 12:30

If you enjoyed this episode, please rate, review and share it! 

Links:

More Sunlight episodes to help you start your business:

• Episode 20: Pricing and Business Lessons

• Episode 44: S Corp Mistakes That will Cost You Thousands

• Episode 50: The One Thing You Must Do in Your Business

• Episode 67: Your Business Already Started

• Episode 68: The Right Step at the Right Time

Free 20 Minute Course on Filing your BOI Report for LLCs: www.sunlighttax.com/llc 

IRS Proof Your Business Deductions

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Insider Deduction Tips

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Today, I’m giving you some insight into deductions and details on categories when it comes to your schedule C deductions. I talk about key categories for deductions like advertising and supplies and why it’s so important to keep proper documentation when it comes to deductions on your taxes. 

Join me this week, to get some strategic guidance on maximizing your deductions and avoiding audits by putting expenses in their appropriate categories.

Also mentioned in today’s episode: 

• Advertising and why website hosting fee’s go there 3:00

•  2 common categories where tax preparers may dump expenses without proper documentation 5:20

• How to avoid an audit when it comes to listing your deductions 12:40

If you enjoyed this episode, please rate, review and share it! 

Links:

sunlighttax.com/deductions

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How to Deduct Fees, Bandmate Payouts and Gallery Commissions

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Today, I’m talking about deducting education expenses and explaining how fees and reimbursement works when it comes to reporting your income on your taxes. 

Listen to this episode to get some insight on tax implications and how you can properly track income to meet the reporting requirements.

Also mentioned in today’s episode:  

• Reporting gallery commissions on your taxes 12:54

• How income and taxes work for musicians being paid out for performances 14:54

• When you need a 1099 issued 17:00

If you enjoyed this episode, please rate, review and share it! 

Links:

Get your free Deductions Guide: https://www.sunlighttax.com/deductionsguide

https://www.sunlighttax.com/moneybootcampimpact

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Can a Massage Therapist Deduct Massages? Education Expenses Explained

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Have you ever wondered what you can deduct when it comes to business expenses?

Today, I’m deep diving into education expenses and what you can and cannot deduct on your taxes as a business owner. I’m clarifying what you can deduct for continuing education, like seminars on new techniques, and what counts as leisure. 

Listen to this important episode to learn how you can maximize your deductions when you file your taxes this year. 

Also mentioned in today’s episode:  

• Clarifying the deductibility of massages for wellness practitioners 2:34

• Personal expenses and business deductions- the difference and how much you can really deduct 4:57

• What expenses you CAN deduct 5:54

• Should you deduct research expenses? 9:37

If you enjoyed this episode, please rate, review and share it! 

Links:

WELLNESS PRACTITIONERS’ TAX DEDUCTIONS GUIDE

https://www.sunlighttax.com/wellnessguide

Free class: Make Taxes Easier and Stash an Extra $130k in Your Savings: https://go.sunlighttax.com/free

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Medical Expense Deductions: When it's Worth Tracking & How

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Have you ever wondered how medical expense deductions work and if you could potentially qualify? 

Today, I’m giving you a deep dive into the medical expense tax deduction, including what it is and who qualifies for it so you can know if you have to prepare to keep track of your medical expenses.

Join me in this episode to learn whether or not you qualify for the medical expense deduction and how you can make sure you take advantage of this important tax deduction if you do qualify. 

Also mentioned in today’s episode: 

• Standard vs. itemized deductions 5:17

• The maximum deduction for medical expenses 18:23 

• How to know when it’s worth it to track your medical expenses 21:06

• What is medically deductible 27:19

If you enjoyed this episode, please rate, review and share it! 

Links:

• IRS Medical expenses guide

• Blank 1040 Form

• Itemizing vs. Business Deductions: Ending the Confusion

• Register for the free class, How to Thrive in a Recession (When You're Self-Employed)

• Get an extra 4 episodes of my most valuable lessons, with email nudges to help you implement, on my private podcast right here.

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The Home Office Deduction

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Today, I’m explaining the home office deduction including how you can calculate your own home office deduction when you’re filing your taxes as a creative entrepreneur this upcoming tax season.

 Join me in this informative episode to learn a simplified way of calculating this important deduction and how you can make sure you’re getting the most out of it this tax season. 

Also mentioned in today’s episode: 

• What is a home office? 1:51

• Calculating the home office deduction 7:16

• Your deductible home office expenses 8:56

• Personal vs. business time and how to calculate it 14:00

• Calculating mileage when you have a home studio 16:30

 If you enjoyed this episode, please rate, review and share it! 

Links:

 https://www.sunlighttax.com/deductionsguide

https://go.sunlighttax.com/free

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Why Business Deductions Save More Than You Think: Self-Employment Tax: Money School

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In today’s episode of the Money School Bonus Series, I’m explaining what self-employment tax is, why tax deductions are so important as a creative entrepreneur and how they save you more money than you may think. 

Join me in this informative episode to learn the details about self-employment tax and how you can make sure you’re getting the most out of your deductions each year. 

Also mentioned in today’s episode: 

• Understanding self-employment taxes 1:23

• Tax brackets and what they actually mean 3:44

• The average tax rate for self-employed people 6:16

• Self-employment taxes explained 10:52

• Why you need to be tracking all of your expenses 13:02

• Getting the most out of your deductions 22:11

If you enjoyed this episode, please rate, review and share it! 

Links:

https://www.sunlighttax.com/deductionsguide

https://go.sunlighttax.com/free

Itemized vs. Business Deductions: Ending the Confusion

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If you’re a creative entrepreneur, you may be confused about itemizing vs business deductions, and whether to itemize or take the standard deduction when you’re filing your taxes. 

Today, I’m diving into the details of business deductions and itemizing as a creative, the differences between the two, and exactly how to know if you should be itemizing. I’m also sharing the civic side of taxes and some of the built-in biases that exist within our tax system.    

Also mentioned in today’s episode: 

• Schedule C and who gets to file it 3:09

• What are business deductions 6:25

• The standard deduction for 2022 12:09

• What are itemized deductions 14:25

• The difference between itemized deductions and business deductions 22:05

• The equity issues behind itemized and standard deductions 23:36

• Why the tax code favors home ownership 29:10

• Exactly how to know if you itemize 32:40

If you enjoyed this episode, please rate, review and share it.

Links:

https://www.sunlighttax.com/deductionsguide

Startist Interview: Profit Motive, Marketing, and Tax Tips for Artists

Is your art a business or a hobby?

Hannah talks with Laura Griffin and Nikki May of Startist Society about her roots as an artist and about establishing a profit motive for your art business. She chats about empowerment for artists and how she got started in accounting after some bad experiences she had as an artist.

What should you use to track expenses? How and what expenses are deductible? Can donated artwork be deducted? Do I need to collect sales tax? Find out the answers in this podcast interview relevant to creative freelancers in the US.

Hannah discusses what things in nature and the outside world inspire her as an artist and how to slow down to look at things that most people don’t notice. How does she choose what she paints in her art practice?

They talk about using your left brain vs. right brain and balancing art and your business practice. Hannah goes into depth about how to show the IRS that your art is a business and not a hobby. They discuss how to show a profit motive through your activities and record-keeping—even if your business is not yet generating a profit.

Hannah gives specific information about tracking business expenses and receipts with examples that pertain to creative people. She also discusses how LLCs are legal and not a tax entities. They explore how to prevent tax audits and common deductible expenses, including details about mileage, business meals, donations, etc.

Money Bootcamp is an annual membership for creators to get you set up right and tracking all the right things without wasting your time. You'll have more time for creative pursuits when you stop worrying about your finances and money.

How the New Tax Cuts and Jobs Act Impacts the Art World

(graphic Hrag Vartanian/Hyperallergic, original image via Credit Score Blog)

Under the new tax laws, the wealthiest will have even more incentive to make charitable donations, while the average middle class family will have less.

The tax law changes passed in 2017, officially the Tax Cuts and Jobs Act (TCJA), represent the largest change to the tax code in 30 years. With so many changes, Hyperallergic wants to address — in this and future articles — how the legislation will affect the art world.

One area in particular that impacts almost everyone in the art world — from artists, to collectors and patrons, to cultural institutions — is charitable giving.

read more here…

Your Miami Tax Guide: Yes, You Can Deduct That Pina Colada

After a few weeks diligently absorbing the dark, awful post-election news, I’m ready to turn my attention to fun, sun, and travel deductions for the Miami art fairs.

To review the basics, if you’re a professional artist with a profit motive, you’re reporting your income each year on a Schedule C (as part of your 1040 form), and the beauty in that is that it entitles you to list your income and your expenses. So as a self-employed person, you are paying taxes on the difference between those numbers (aka your “profit,” which is income – expenses), and not on the gross income you receive.

Travel expenses incurred in your arts business are one of the great deductions that you are allowed. A note of caution before you go expensing a bunch of luxury accommodations though: by law, your business expenses must be “ordinary and necessary” to qualify. This means that if the industry standard is a Motel 6, and you book the Ritz-Carlton, you may deduct only the Motel 6 amount. Further, travel expenses are a tempting area for tax abuse (along with meals and entertainment and home studios). If yours are out of proportion with the size of your business, or compared to your peers, you have an excellent chance of being audited.

Warnings aside, travel deductions are a great benefit, and here is how to make the most of them, in time for the Miami art fairs.

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