From the home office deduction to mileage logs, here are five write-offs that quietly cost Rhode Island business owners money each filing season.
Every year we review returns prepared elsewhere and find the same deductions left on the table.
1. Home office
If you use part of your home regularly and exclusively for business, you can deduct a proportional share of rent, utilities, and insurance.
2. Business mileage
The standard mileage rate covers far more than commuting to a client site. Keep a contemporaneous log.
3. Retirement contributions
A SEP-IRA or Solo 401(k) can shelter a meaningful share of net self-employment income.
4. Health insurance premiums
Self-employed taxpayers can often deduct premiums above the line.
5. Startup and professional fees
Legal, accounting, and formation costs are deductible or amortizable.
If any of these sound unfamiliar, bring last year's return to your next appointment and we will review it with you.