Common self-employment expense categories include:
- Advertising, marketing, promotion
- Auto mileage (the IRS standard rate accounts for gas, repairs, insurance, etc.)
- Commissions and fees
- Contract labor (you may need to issue 1099’s)
- Equipment purchases (provide a list including the purchase date and price of anything over $500)
- Business insurance
- Health insurance
- Interest paid to finance business purchases
- Inventory purchases (items intended for resale, or materials for manufacture)
- Phone and internet (prorated appropriately between business and non-business usage)
- Professional fees (legal, accounting, etc.)
- Professional development (for your existing line of work, not training/education for a new profession)
- Office expenses (postage, office supplies, etc.)
- Rent
- Repairs and maintenance
- Supplies and small tools
- Licenses and permits
- Taxes (business taxes only, not your personal income taxes)
- Travel (airfare, hotel, car rental, etc.)
- Meals (only with a clear business purpose – e.g. discussing business with clients, consultants, or potential customers; or while traveling out of town overnight for business; does not include buying yourself lunch or dinner on a long work day)
Common rental property expense categories include:
- Auto mileage
- Cleaning, yard care
- Maintenance and repairs (minor)
- Major repairs and renovations (provide a summarized list)
- Insurance (homeowner’s, liability)
- Mortgage interest
- Professional fees (legal, accounting, etc)
- Property management fees
- Supplies
- Property taxes
- Utilities (do not include any amounts paid by tenants)
- HOA fees