
Using the simplified method, you deduct $5 per square foot of your home used for business, up to a maximum of 300 feet. Unsurprisingly, one is easier than the other. You have two options for calculating the home office deduction: the simplified method, and the regular method.

That means no external office or coworking space from which you run your business.

You should be ready to prove this with a consistent, printed schedule.
#DEDUCTING CONTRACTOR EXPENSES PHOTOGRAPHY TAXES HOW TO#
Read on to learn about the write-offs you may be missing, and some ideas on how to use them as a means to reinvest in your ecommerce business.

If you run an online store, putting some of your profits towards tax-deductible business expenses can help your business grow and give you a break come tax season.Įven day-to-day expenses-car trips to the post office, or the electricity bill for your home office-could be saving you money, so long as they’re recorded and reported. “Looking back, we should have reinvested that money into the company.”Įven though those tax hits hurt, they inspired Gruss to put some of profits towards expenses he could write off-in this case, marketing-and help turn Loop Loft into the steadily growing company it is today.Įvery ecommerce entrepreneur can learn from Gruss’s experience. “We’d have a pretty profitable year, but then get nailed with taxes,” he says. Not long after launching Loop Loft, Shopify seller Ryan Gruss saw his profits increase.
