Income & Expenses
Knowing what is considered a legitimate business expense is very important for everyone who is self-employed. Make sure you understand the basics.
Updated 2 weeks ago
The key thing to understand is that if you spent the money in pursuit of freelance profit, it counts as an expense with only a few exceptions. In other words, did buying that thing or paying for that service impact your work? Here are a few examples:
You’re a painter and went to the store to get some canvases, paint, and pencils. Awesome, we look forward to seeing what you do with it, and yes, that’s a legitimate business expense.
You’re a designer and illustrator who connects with clients and sells your illustrations on the web. Fantastic! Your internet costs are deductible.
Your pet salamander keeps you company in your home office, but is a really picky eater, so you have to import special food for them from Mozambique. Alas, this one is a no. Sorry salamander.
Once you’ve got a rough sense of what your expenses are, just do the best you can when you’re filling out our online form. During your tax appointment, our preparers can answer any questions you have about specific expenses and verify that everything is on the level. You can also use our free expense tracker to record your expenses throughout the year.
Get started on your taxes today by signing up for an account with Brass Taxes.