Working with freelancers and new small business owners, a question I hear often is “What can I deduct?”
The short answer is any ordinary and necessary expenses of running your business. Ordinary expenses are ones that are common and accepted in your field. Necessary means those that are helpful and appropriate for your business.
I recently wrote a post for Freshbooks that covers common deductible expenses, differentiating between assets that need to be capitalized versus expenses, and how to set up expense categories in Freshbooks.
If you’re wondering what you can deduct or just trying to get your expenses organized before tax time, give it a read. I hope it helps!