It's Tax Time! What is Deductable

[Cypher1]

Hello All,

Most things are obvious as far as operating expenses, but as a new agent I have a couple questions. The initial cost of getting licensed (Online school, testing, finger printing, license fees) is that all deductable? I am sure E and O is ok to write off. Also cost for CE. Anything else I might be missing?

Thanks in advance!

 

[WinoBlues]

Hello All,

Most things are obvious as far as operating expenses, but as a new agent I have a couple questions. The initial cost of getting licensed (Online school, testing, finger printing, license fees) is that all deductable? I am sure E and O is ok to write off. Also cost for CE. Anything else I might be missing?

Thanks in advance!

I sure hope Vegas is.

Do you have a home office? A true office, not the guest room? I write mine off. My last Prostate exam, I mean audit, they were only interested in my meals & entertainment and mileage.

 

[Cypher1]

have an office I pay for so no home office deduction for me. I don't do a lot of meals or gifts, just a handful.

 

[Chazm]

I sure hope Vegas is.

Do you have a home office? A true office, not the guest room? I write mine off. My last Prostate exam, I mean audit, they were only interested in my meals & entertainment and mileage.

I really don't write of meals or entertainment but I do write off mileage. What I do is everyday is when I run an appt I write down at the bottom of my scheduler for that day how many miles I drove. Would that suffice? Or do they want to know more?

 

[WinoBlues]

I really don't write of meals or entertainment but I do write off mileage. What I do is everyday is when I run an appt I write down at the bottom of my scheduler for that day how many miles I drove. Would that suffice? Or do they want to know more?

They like that. They prefer a driving log. It is a fine line between giving them enough and giving them to much.

 

[Chazm]

They like that. They prefer a driving log. It is a fine line between giving them enough and giving them to much.

Great, thanks. I really need to get a tax guy but I'm not very organized. I just have a bunch of receipts piled up from over the year. I hear they'd rather you have an account that you use for biz purposes only. I haven't gotten that far yet.

 

[Full Throttle]

I personally enter all my expenses and revenue into a spreadsheet at the end of the week and throw the receipts in a folder never to be seen again. I also do a monthly P&L statement. Otherwise, how would you know if you are paying in enough for estimated taxes? (assuming you file estimated taxes)

Another alternative for expenses is to have a credit card you designate for all business expenses. That will make it very easy each month to print out your monthly statement and see all items in one place. Then you can just throw all the receipts in a shoe box as you go. Get a credit card that allows you to rack up points or get money back.

 

[Franz Kafka]

The IRS expects you pay a certain percentage of your gross income. As long as you at least pay that amount, they will just skim through your return. If you want to pay less than that, they will scrutinize and beyond certain percentage, expect an audit. (per my CPA's opinion)

 

[Chazm]

The IRS expects you pay a certain percentage of your gross income. As long as you at least pay that amount, they will just skim through your return. If you want to pay less than that, they will scrutinize and beyond certain percentage, expect an audit. (per my CPA's opinion)

Any idea on that percentage?
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Hello All,

Most things are obvious as far as operating expenses, but as a new agent I have a couple questions. The initial cost of getting licensed (Online school, testing, finger printing, license fees) is that all deductable? I am sure E and O is ok to write off. Also cost for CE. Anything else I might be missing?

Thanks in advance!

I'm no expert but tolls you can write off. They base the percentage off of how many business miles you drive compared to leisure. Im pretty sure leads can be too....god I hope so

E&O and all your initial stuff to become an agent.

 

[mmaedelins]

I'm still in the first few months of this business but I took my insurance classes, had my fingerprints done, and paid for the state exams and licensing in 2011. Would I be able to write these off during this year's tax season?