101 Tax Deductions for Your Online Business

picture of tax forms

Today I was reading I Help You Blog’s “101 Great Posting Ideas For Your Blog”.
It is a great post with lots of ideas and it inspired me to write 101 Tax Deductions for Your Online Business.

These deductions are all perfectly legal, however, the IRS is picky about how you take them. So make sure to do some research, or engage the services of a professional, before you take these deductions on your tax return.
Now, on to your 101 Tax Deductions!

Online Deductions

01. Web Hosting
02. Internet Connection
03. PayPal Charges
04. AdWords Ads
05. Web Designer Fees
06. E-Books Purchased for Business Use (Not for Sale, those would be inventory and that’s another post!)
07. Affiliate Fees

08. Online Education
09. Domain Name(s)
10. Business Related Seminars and Webinars

General

11. Advertising
12. Attorney Fees
13. Office Rent
14. Bad Debts – Only when you are sure they are uncollectable.
15. Business Liability Insurance
16. Bank Account Fees
17. Subscriptions to Magazines and Trade Publications
18. Errors and Omissions Insurance
19. Business Telephone (Can’t be home phone)
20. Long distance business calls made from home phone.
21. Equipment Leases
22. Repairs
23. Maintenance
24. Supplies
25. Professional Services
26. Tax Preparation Fees
27. Business Consultants
28. State Taxes
29. Local Taxes
30. Property Taxes
31. Marketing
32. Gifts to Clients (value under $25)
33. Bank Wire Fees
34. Credit Card Merchant Account Charges
35. Overdraft Fees
36. Educational Tapes or CDs
37. Returned Check Fees
38. Postage
39. Freight and Shipping
40. Credit Insurance
41. Business Interruption Insurance
42. Licensing and Fees

Employees

43. Wages
44. Bonuses
45. Employer Paid Social Security Taxes
46. Employer Paid Medicare Taxes
47. Employer Paid Unemployment Taxes
48. Employer Paid Health Insurance Premiums
49. Employer Paid Retirement Plan Contributions
50. Worker’s Compensation Insurance
51. Meals and Snacks Provided to Employees for the convenience of the employer.
52. Christmas or Holiday Party for Staff
53. Employee theft losses (Your employees will steal from you!)
54. Salaries
55. Overtime Wages
56. Sick Pay
57. Dependent Care Assistance Program Expenses

Amortize

Start Up and Organizational Costs

58. Research of Potential Markets
59. Advertising for the Opening of the Business
60. Wages for Training Employees
61. State Incorporation Fees
62. Costs of Organizational Meetings
63. Temporary Director Fees
64. Costs to secure prospective Vendors
65. Start Up Consultant Fees
66. Costs to have contracts drafted

Intangibles

67. Amounts paid for a Covenant no to Compete
68. Circulation expenses for magazines, newspapers , and other publications
69. Amounts paid for Goodwill
70. Trademarks
71. Trade Names
72. Franchise Name
73. Customer Lists
74. Vendor Supply Contracts
75. Patents
76. Computers
77. Research and Experimental Costs

Depreciate

78. File Cabinets
79. Chairs
80. Tables
81. Office Furniture
82. Equipment
83. Vehicles
84. Desks
Travel, Meals and Entertainment
85. Meals with clients (50%
86. Meals while away from home (50%)
87. Conventions
88. Trade Shows
89. Lodging while away from home
90. Taxi Fares
91. Airfare
92. Bus Fares
93. Vehicle Fuel
94. Vehicle Maintenance
95. Vehicle Insurance
96. Tips
97. Incidentals (Laundry, small toiletries

Qualified Home Office

98. Business Portion of Rent
99. Business Portion of Mortgage Interest
100. Utilities
101. Business Portion of Home Improvements

There you have it! 101 deductions, for large businesses and small. But as always, please seek a professional for advice about your particular tax situation.

8 thoughts on “101 Tax Deductions for Your Online Business”

  1. Slight problem to note with the “Bad Debts” thing — If you’re running a cash-based accounting, rather than accrual-based, you can’t do anything with the bad debts, since they haven’t actually been claimed as income.

    I imagine most online businesses are Cash-based. That’s what I would recommend for them, at least.

    Tax Deductions’s last blog post..Most Overlooked Tax Deductions

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