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.
One of the things I like most about writing about personal finance topics is getting the chance to learn things I didn’t know previously. I’ve bought three homes over the years while I noted that my lenders provided both an interest rate and an APR, I never asked about the difference between those two numbers.
Recently, I had the chance to answer that question for Lending Tree. It made me wish I could go back in time and take a closer look when I bought my mortgage!
Whether you’re working your side hustle or working your business full-time, issuing 1099s is a crucial, yet often overlooked aspect of running a small business. Can you really afford to ignore your obligation? It’s a pretty expensive mistake.