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Deductions and Write-Offs

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Deductions and Write-Offs

Home Office deduction

Asked Sunday, May 10, 2026 by Cherilee

I 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

Quick Answer:

If your home office occupies 57% of your home and meets the requirements for a home office deduction, then 57% of your household utility bills can typically be included as a business expense. This pe...
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Deductions and Write-Offs

Returns

Asked Wednesday, April 08, 2026 by Stetson

This 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?

Quick Answer:

The $1000 business computer is indeed an asset subject to depreciation. For tax purposes, you have a couple of primary ways to deduct its cost. One method is Section 179 expensing, which allows you t...
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Deductions and Write-Offs

529 tax deductions

Asked Wednesday, April 08, 2026 by Peter

Hello I live in Connecticut and work in New York. I have an NY 529. Can I deduct my contributions from my taxes? Thank you.

Quick Answer:

Contributions to a 529 plan are not deductible on your federal income tax return. For New York State income tax purposes, you can deduct contributions made to *any* state's 529 plan. As someone who w...
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Deductions and Write-Offs

Tax liability

Asked Friday, January 02, 2026 by JOSEPH

Hello, I Own a llc. In Connecticut and do Excavating. I purchased .property in 2025 for 200k to ise for business operations. Im trying to figure out how much my tax liability will be come tax season.

Quick Answer:

The purchase of property for business operations in 2025 is a significant event. However, the $200,000 cost itself does not directly reduce your tax liability dollar-for-dollar in the year of purchase...
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Deductions and Write-Offs

Rental Properties

Asked Friday, December 05, 2025 by Shan

If I invest in rental properties through sites like arrived.com, how would that affect my taxes when I file tax returns next year? Would it position me for more deductions?

Quick Answer:

Investing in rental properties through platforms like arrived.com means you'll report your share of rental income and can claim corresponding deductions. Common deductions include depreciation, proper...
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Deductions and Write-Offs

Mileage

Asked Wednesday, September 03, 2025 by Heather

Hi! My company either pay for gas when I travel for site visits or mileage reimbursements. They said if I do the gas option I can claim my mileage on my taxes and get more money back verses having the company pay for my mileage. Which is better

Quick Answer:

As a CPA, I must advise against claiming mileage reimbursement *and* gas expense deductions simultaneously. This is double-dipping and is illegal. You can only deduct one or the other. If your comp...
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Deductions and Write-Offs

New Car Deduction

Asked Tuesday, August 12, 2025 by Mary Sue

Hello, I was wondering if I can deduct a portion of the cost of a new car purchase under section 179 if I have a sole proprietorship and will be using the car 60% of the time for business meetings, site visits, and client meetings?

Quick Answer:

No, you cannot deduct a portion of the cost of a new car under Section 179. Section 179 allows for the immediate expensing of certain *property*, but passenger automobiles are subject to limitations....
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Deductions and Write-Offs

Reduce Tax Liability

Asked Wednesday, August 17, 2022 by Mary

Does buying something of value help me reduce my tax liability? We have earned a substantial amount of money this year and I am wondering if purchases need to be made to reduce our tax liability.

CPA Answer:

Earn tax-free income.

Maximize deductions.

Maximize tax credits.

Contributing to a retirement account – 401k or IRA.

Opening a health savings account.

Contributing to employer-sponsored plans.

Profiting from investment losses.

Check for flexible spending accounts at work.

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Deductions and Write-Offs

What to pay out of business account?

Asked Wednesday, December 08, 2021 by Katie

I have a virtual assistant business out of my home. I plan on writing off part of my mortgage and utilities. Should I pay these bills out of my business account?

CPA Answer:

Hello Katie,

In order to answer your question properly, it is important to know the tax structure of your business; is it a corporation, Single-member LLC or sole proprietor.

Since we can only deduct the portion of your home that is used exclusively and regularly for business (the rule of thumb for the percentage to be in the range of 5-20%), I would advise you to pay for the expenses out of your personal accounts, then record the deductible portion on a monthly basis on a separate sheet. At the end of the year or on a monthly basis, provide an employee reimbursement report to your company for payment.

In general, the deductible portion of the mortgage, real estate taxes, utilities, and insurance need to be booked as "due to shareholder". Once it has been paid by cutting a check or transferring the money out of your business account to your personal account, you will need to reverse the entry by getting rid of your account "due to shareholder" and reducing your cash balance.

Hope my answer helped.


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