Taxes suck. And so does having to pay a 15% small business tax on all of your income. Whether you are a 1099 contractor or individual business owner, make sure to take the maximum deductions possible to pay the least amount of taxes possible.
Below are some deductions that people usually don't consider.
1. Cell Phone Bill
If your cell phone is used at all in running your business or doing your consulting, make sure to deduct a portion of your bill. Just estimate the percentage usage and multiply it by your monthly cost.
Example:
$100 monthly bill
35% business use
35%*100=$35
$35*12 months= $420
2. Rent/Mortgage
If you have an office in your home, or rental, you can deduct that cost from your taxes. You need to multiply the % of square footage your office by the mortgage or rent payment.
Example:
Rent Payment: $800/month
Total square footage: 1000
Office square footage: 100
100/1000=10%
800*10%=$80
$80*12= $960
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