What business expenses are deductible?

IRS tax deduction explanation
2015 was the first year with speaking revenue.

 

How long does it take to start a business?

Personally, it took six years of spending (on average $1,000/month) without making a dime. In year seven (2015) i finally made my first dime.

i told my tax professional i have carried a deep fear the IRS would tell me, “You have been deducting expenses for six years without any income. Is this a hobby or a business?”

In year seven, 2015, i was blessed to not only have income, but have enough income that removed any doubt whether it’s a hobby or a business.

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is one that is common and accepted in your field of business.

A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.

 

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Slowing down is a great way to see things differently on purpose

Apple Store window display of colorful beads promoting iPhone 5c
Slowing down is a great way to see things differently on purpose

 

Slowing down is a great way to see things differently on purpose. At one point an Apple Store employee (whom I hadn’t met yet) kindly asked me to come out from behind the window display. In seeking different vantage points there was a small risk – breaking a relatively minor rule.

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