Lancaster, OH · Member since 2012 · 43 posts · 1 vote
Hello from Mansfield, Ohio. Can't get enough of Bigger Pockets. The only podcast I listen over and over. What a great asset. I am hoping a member might have a excel template set up with all the approved categories for tax deductions. Need something that reminds me that it can be deducted. ie internet service.& cell phone. Looking forward to getting in on some of the forums.
Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
11y
The authority to deduct business expenses comes from 26 USC § 162.
26 USC § 162(a) states that [t]here shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business...."
It's impossible for anyone to give you a fully inclusive template because the definition is so flexible. As a general practice, you should track all expenditures that may be related to the business until you get a feel for what you should be deducting and what you can't.
Of course, consult with your legal and / or tax advisers before making any decisions.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
11y
Seriously, get a copy of IRS Schedule E to see the broad categories of expenses to deduct. You then have to judge whether any individual expenditure fits into a given category.