 Re: Should "cost of printing shirts" and "gas" be included in tax write off?
Hi Johnsmith,
This is a basic explanation that a tax preparer can explain further.
As far as write offs are concerned, you can write off every single thing that you have to spend money on in order to run your business. If it is not directly related to running your business, then do not write it off.
Things you may write off are computers, software, t-shirt supplies, inks and printers, stationary, travel expense including gas, maintenance and repairs, a home office, home phones, cell phones, advertising, website expenses, screen printing expenses, postage, artists, seminars, magazine subscriptions, business insurance etc, etc. Everything that costs you money in order to make money is a write off, including the fee your tax preparer charges you.
On the flip side, all the money that you bring in has to be claimed as income.
Take all the money that you bring in, subtract all the money that you had to spend on your business, and that is your profit. Your profit is what you will have to pay taxes on.
Save every single receipt for business purposes for 7 years.
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