Spring is rolling around which means tax season is in full swing. While it can be particularly painful, it’s important to file your taxes to avoid excessive fees and legal trouble. Keeping track of your financial records is just one part of filing your taxes for 2016. Here are a few simple tax tips from us at Capital Toyota to help you through the season.
- Home Office Deductions – If you own or rent your home, you can deduct some expenses resulting from your work on it. The IRS requires that the home must be your main place of business and the expenses must be exclusive to your work. Storage space and a home office can be deductions as well. You just have to work out the percentage of space in order to calculation the deduction.
- Car Expense Deductions – Traveling to meet clients and perform normal business is tax deductible as well. While this may seem like a true gem in the pile of tax forms, it’s important to keep accurate records. You can deduct wear and tear, insurance, gas, and mileage.
- Supplies – If you’re a creative type who sells crafts on platforms like Etsy or eBay, you can deduct the cost of materials and supplies as well. Anyone can take this deduction provided they fall under the category of ordinary business expenses.
While you’re working with your financial records, it wouldn’t be a bad idea to pull your credit score either. Contact one of the main credit reporting agencies, such as FICO, and order a report. It could save you a hassle with lenders in the future!