Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Accountable Plan
Asked Thursday, July 02, 2026 by SavtaI am an S Corp Midwifery practice. I spend 96 hours a quarter training an apprentice who is from an underserved population. I do not get paid for this service. At a basic fee of $25/hour this is $2400/quarter. Can this be used on the accountable plan as out of pocket expenses?
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Home Office Deduction and Reimbursement Structure for Manager-Managed Partnership LLC
Asked Monday, June 15, 2026 by MayWe are a manager-managed LLC taxed as a partnership. Managers are required to maintain a home office so which is the better approach: 1. LLC reimburses managers for home office expenses and deducts them as business expenses. 2. No reimbursement; managers claim home office deductions on their personal tax returns. Can managers report reimbursements as non-taxable? How are mortgage interest and property taxes treated if reimbursed? Which option is more compliant and tax-efficient?
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How to distribute and claim tip tax exemption?
Asked Wednesday, May 27, 2026 by AshleyWe own a mom & pop business, an LLC, IRS treats as a partnership of my wife and me, no paid employees. Our income is as owners draw as needed from net profits. My question is about reporting of $15,000 tip income, which is not distributed to us, just left in income. If we pay the tips to us and report as income, which is now exempt up to $25k, do we need to issue 1099s to each partner? Or can we just transfer the tip income into owner's equity. If so, how can we claim the tip tax deduction?
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accountable Plan
Asked Saturday, May 23, 2026 by CherileeI have an S Corp and provide midwifery and health care services. I spend 6 hours a week training an apprentice for which I do not get paid. Can this be included in the Accountable Plan?
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Tax Deductions and Charitable Tryst
Asked Friday, May 22, 2026 by JohnMy father set up a charitable trust to donate funds to three schools. The trust was funded by a life insurance policy; the trust was beneficiary. The insurance policy turned out to be a second to die policy that did not pay out until my step-mother died five years later; so after my father died and the trust terminated, I made myself the beneficiary. When I received the funds, I gave the schools what they should have received. Can I deduct the contribution on my personal tax return?
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Office expense
Asked Tuesday, May 19, 2026 by CherileeI have an S Corp home office that occupies 67% of my home. I see clients in my home. I purchased 2 small air purifiers for that space. Is this considered a business expense or a household expense
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Home Office deduction
Asked Sunday, May 10, 2026 by CherileeI have an S Corp, Home Health Care business. I have a home office that occupies 57% of my home. What percentage of household utility bills can be a business expense
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Returns
Asked Wednesday, April 08, 2026 by StetsonThis is my first year doing taxes ever for my business or personally. I started my business just a year ago and have spent $1400 in it this year $1000 of that being in a business computer. since I have zero taxable income is there any way that I can do my taxes in which this business computer is a depreciating asset or some way that I could get some money return this year or the $1000 in total that I spent on this computer or is there no way to do that and I have to roll it over to next year?
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529 tax deductions
Asked Wednesday, April 08, 2026 by PeterHello I live in Connecticut and work in New York. I have an NY 529. Can I deduct my contributions from my taxes? Thank you.