I'm self-employed in Michigan, and I'm looking for tax deductions for a home health care business.?
I work mostly out of my car. I travel from my home each morning to my clients homes. I need to know what I can claim and what I can't. Please help!! ...
I work mostly out of my car. I travel from my home each morning to my clients homes. I need to know what I can claim and what I can’t. Please help!!
Get yourself a little notebook for your car. Attach it to the dashboard or something. Everytime you get in the car for business – jot down the date, where you’re going & purpose, and record the milage.
You will get to deduct 41 cents (or so – it changes about every other year) per mile on your taxes. It’s deduction gold. You can only take the cents-per-mile deduction if you OWN the car. If you lease, you need to keep track of every single expense – gas, oil, repairs, lease payments, taxes, etc, and all your milage as usual – but then take the business percentage of the actual expenses. Doable – but a recordkeeping nightmare.
Any trips to the store to purchase supplies for your business also count as business miles. And money out of your pocket that is related to your business is most likely deductible.
call the IRS and they can send you a brochure which lists those things.