You can report advertising and supplies for personal business tax deductions.
All small business owners, even those working their businesses part-time, must report personal business income. Additionally, small business owners can report 100 percent of most business expenses, as long as the expenses are necessary for operating the business. You will report your personal business income on "Schedule C," which is published by the Internal Revenue Service. Subsequently, calculate the profit or loss for your business, then transfer that total onto your 1040, 1040A or 1040EZ income tax form.
Advertising
You can deduct all advertising expenses for your business. Examples of advertising include newspaper classified or display ads, Internet promotions, coupon magazine ads, radio and television commercials and billboard advertising. Keep track of all your advertising expenses during the year and save all receipts. You can purchase ledger software that will separate various types of business expenses for you. That way, you will always have a running total of your advertising expenditures. And when taxes are due, you will not have to pore over lists of expenses to cipher out your advertising expenses.
Supplies
All supplies for your small business are tax deductible. Supplies can include reference books, legal pads, pens, pencils, staplers, accounting ledgers, scissors, manila folders, calculators or anything necessary for you to conduct business. Additionally, if you run a cleaning business or work as a contractor, you can report cleaners, squeegees, buckets, hammers, screwdrivers or other tools and supplies necessary for your business.
Shipping Expenses
You can deduct 100 percent of any shipping or postage expenses that are necessary for your business. Shipping expenses are usually report under "Other Expenses" on Schedule C. Keep all receipts for any mailings or couriers you use throughout the year. Also, keep track of any meter mailings expenses you incur if you do a lot of direct mailings for your business.
Home Office Deduction
You can deduct your home office for business if you use it regularly and exclusively, according to the IRS. Home office deductions are usually calculated by dividing the square footage of your office by the square footage of your home. Hence, the percentage of your home used as an office can then be deducted from your monthly mortgage payments. For example, hypothetically assume your mortgage payment is $1,000 per month. If you have a 100-square-foot office and a 2,000-square-foot home, you may be able to take a 5 percent home office deduction from your mortgage: $50 times 12 months equals $600. However, check the latest IRS rules on home office deductions before taking the home office deduction.
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