Dimond Tax Services - An Oakland Calfornia based Tax Return Preparation Firm
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PROFESSIONAL FEES & DUES: SUPPLIES & EXPENSES:
keyexpenses
PROFESSIONAL FEES & DUES: SUPPLIES & EXPENSES:
Dues paid to professional societies related to your profession
are deductible. However, the cost of initial admission fees
paid for membership in certain organizations or social clubs
are considered capital expenses.

CONTINUING EDUCATION:

Educational expenses are deductible under either of two
conditions: (1) your employer requires the education in order
for you to keep your job or rate of pay; or (2) the education
maintains or improves your skills in your profession. The costs
of courses that are taken to meet the minimum requirements
of a job, or that qualify you for a new trade or business, are
NOT deductible.

TELEPHONE EXPENSES:

The basic local telephone service costs of the first telephone
line provided in your residence are not deductible. However,
toll calls from that line are deductible if the calls are business-
related. The costs of a second line (basic service and toll calls)
in your home are also deductible if that line is used
exclusively for business.

AUTO TRAVEL:

Your auto expenses are based on the number of qualified
business miles you drive. Expenses for travel between business
locations or daily transportation expenses between your
residence and temporary work locations are deductible;
include them as business miles. Expenses for your trips
between home and work each day, or between home and one
or more regular places of work, are COMMUTING expenses
and are NOT deductible.

Document business miles in a record book as follows: (1) give
the date and business purpose of each trip; (2) note the place
to which you traveled; (3) record the number of business miles;
and (4) record your car’s odometer reading at both the
beginning and end of the tax year. Keep receipts for all car
operating expenses – gas, oil, repairs, insurance, etc. – and of
any reimbursement you received for your expenses.

Generally, to be deductible, items must be ordinary and
necessary costs in your profession and not reimbursable by
your employer.

EQUIPMENT PURCHASES:

Record separately from other supplies the costs of business
assets that are expected to last longer than one year and
cost more than $100. Normally, the costs of such assets are
recovered differently on your tax return than are other
recurring, everyday business expenses such as business
cards or office supplies.

OUT-OF-TOWN TRAVEL:

Expenses accrued when traveling away from “home”
overnight on job-related and continuing education trips are
deductible. Your “home” is generally considered to be the
entire city or general area where your principal place of
employment is located. Out-of-town expenses include
transportation, meals, lodging, tips and miscellaneous items
like laundry, valet, etc.

Document away-from-home expenses by noting the date,
destination and business purpose of your trip. Record
business miles if you drove to the out-of-town location. In
addition, keep a detailed record of your expenses – lodging,
public transportation, meals, etc. Always list meals and
lodging separately in your records. Receipts must be retained
for each lodging expense. However, if any other business
expense is less than $75, a receipt is not necessary if you record
all of the information in a timely diary. You must keep track of
the full amount of meal and entertainment expenses even
though only a portion of the amount may be deductible.

MISCELLANEOUS EXPENSES:

Expenses of looking for new employment in your present line
of work are deductible – you do not have to actually obtain
a new job in order to deduct the expenses. Out-of-town, job-
seeking expenses are deductible only if the primary purpose of
the trip is job seeking, not pursuing personal activities.

The information provided in this brochure is an abbreviated summary of the rules for the job-related expenses applicable to business professionals.
For additional details as to specific business expenses, the records required and the various governmental regulations,
consult the firm providing this brochure.


OB23 © ClientWhys, Inc.

Tax Deductions for:
Business
Professionals
OccupationalSeries
Liability Insurance - Business
Subscriptions
Resumé - Job Seeking
Other:
Other:
introductionIn order to deduct expenses in your trade or business, you must
show that the expenses are “ordinary and necessary.” An ordinary
expense is one that is customary in your particular line of
work. A necessary expense is one that is appropriate but not
necessarily essential in your business. The application of these
terms to you relies heavily on the “facts and circumstances” of your
unique situation.BusinessProfessionals
Tax
Deductions for:
PROFESSIONAL Fees & Dues: AUTO Travel: EQUIPMENT Purchases:

Association Dues
Credentials
License
Professional Associations
Union Dues
Other:
Other:
Between Jobs or Job Locations (mi)
Client Meetings (mi)
Continuing Education (mi)
Job Seeking (mi)
Out-of-Town Business Trips (mi)
Purchasing Job Supplies & Materials (mi)
Professional Society Meetings (mi)
Parking Fees ($)
Tolls ($)
Other:
Answering Machine


Briefcase
Business Meals (enter 100% of expense)
Business Cards
Clerical Service
Computer Software
Computer Supplies
Customer Lists
Entertainment (enter 100% of expense)
Equipment Repair
Fax Supplies
Gifts
Greeting Cards
Legal & Professional Services
Office Expenses
Photocopy Expenses
Postage
Shipping
Stationery
Technical Publications
Other:
SUPPLIES & Expenses:
CONTINUING Education:


Correspondence Course Fees
Course Registration
Lab Fees
Materials & Supplies
Photocopy Expenses
Reference Materials
Research Expenses
Seminar Fees
Textbooks
Other:
Other:
COMMUNICATION Expenses:

Cellular Calls
Fax Transmissions
Paging Service
Pay Phone
Toll Calls
Internet Access
Other:
Pager

Recorder
Telephone

Other:

Other:

OUT-OF-TOWN Travel:

Airfare
Bridge & Highway Tolls
Bus & Subway
Car Rental
Laundry
Lodging (do not combine with meals)
Meals (do not combine with lodging)
Parking
Porter, Bell Captain
Taxi
Telephone Calls (including home)
Train
Other:

MISCELLANEOUS Expenses:
Calculator

Copy Machine

Fax Machine




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