Main > SCC Procedures > Tax Tips

Tax Tips

1. Keep expenses recapped on a spreadsheet monthly (manual or computer-based).

* If you do it manually use an evelope for each month's receipts.
* If you do not have a receipt, you need to record the explanation of the expense and other details in a diary/log for your business.

2. Vehicle deduction

* Can use either standard mileage or % of actual expenses.
* If the car is paid off, standard mileage often provides more.
* If paying car loan, keep record (spreadsheet) of all expenses related to that car to compare with standard deduction for largest deduction.
* Be sure to record your odometer at the beginning and end of the year.
* Drive carefully - traffic tickets are not deductible expenses.

3. Section 179 deduction of equipment costs

Can deduct the full cost of equipment rather than depreciating it over extended period. Using this option allows you to maximize your deductions and allows you to upgrade your equipment (especially computers) more often.

4. Potential deductions for business use of your home

* See IRS Publication 587 for details
* If you have an area of your home that you use exclusively as a home office (especially if you also work as SCA), you may be able to deduct a percentage of your home expenses.
* The area that is used to store your display materials also provides a potential deduction.