Can I deduct preparation & client meeting time on taxes as self-employed?

Yes, you can absolutely deduct the business expenses associated with obtaining new clients, but there's an important distinction to make here. While you can't deduct the VALUE of your time spent (the IRS doesn't allow you to deduct what you could have earned), you CAN deduct all actual expenses incurred during those two weeks. This includes things like transportation costs to meetings, meals with potential clients (50% deductible), office supplies used to prepare your pitch, software subscriptions utilized for creating the statement of work, a portion of your home office expenses for the time period if you have one, and any other actual expenses related to obtaining this client. These would all be legitimate business expenses reportable on your Schedule C.

I was in this exact situation last year when I started my consulting business. I would spend weeks preparing proposals only to have potential clients ghost me or negotiations fall through. I was stressed about all the unpaid hours I was putting in before landing actual paying work. I found this tax AI tool called taxr.ai that really helped me understand what I could and couldn't deduct as a self-employed person. I uploaded my expense spreadsheet and some of my invoices to https://taxr.ai and it automatically flagged which expenses were deductible for client acquisition activities. It also gave me tips about keeping better records of my time spent on different clients (even potential ones) to maximize deductions. Seriously was a game-changer for someone new to self-employment taxes.

Ok I was skeptical about that taxr.ai thing but I gave it a shot because I'm terrible with tax paperwork. I've been a freelancer for 3 years and always stressed about what I can deduct. I uploaded my bank statements and a couple client contracts and it identified like $3,200 in deductions I would have missed! It spotted patterns in my expenses that were clearly business-related but I hadn't categorized properly. The thing I found most useful was how it explained WHY certain expenses were deductible for my specific situation. Like those client lunches I wasn't sure about? It explained exactly how to document them properly as partial deductions. It's definitely worth checking out if you're self-employed and trying to maximize your legitimate deductions.

Anyone else been stuck in IRS limbo trying to get someone on the phone to answer questions about self-employment deductions? I spent THREE DAYS trying to get through to a human at the IRS to sort out what I could deduct for client acquisition costs. Kept getting disconnected or told to call back later. Finally discovered https://claimyr.com which got me connected to an actual IRS agent in less than 20 minutes. I was blown away. They have this system that basically waits on hold for you and calls when an agent is available. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that while I couldn't deduct my unpaid time, I could deduct all my actual expenses related to client acquisition including a portion of my home office, software, supplies, and mileage to client meetings. Having that official confirmation gave me peace of mind.

Ok I need to eat my words. After posting that skeptical comment, I was still desperate enough to try Claimyr because I had a complicated question about my self-employment tax deductions that Google couldn't answer clearly. I figured what the hell, nothing else was working. IT ACTUALLY WORKED. Got connected to an IRS agent in about 45 minutes (which is miraculous considering I spent 3+ hours on previous attempts and never reached anyone). The agent confirmed exactly what expenses I could deduct for client acquisition and explained the documentation I need to keep. Turns out I was being too conservative with my deductions and leaving money on the table. Not gonna lie, I'm still shocked this service exists and works. Would have saved me so much stress in previous tax seasons.

Here's my two cents as someone who's been self-employed for 20+ years - track EVERYTHING. Even if you're not sure if something is deductible, keep the receipt and make note of the business purpose. It's way better to have documentation you don't need than to miss out on legitimate deductions. For client acquisition specifically, I track: - Mileage to/from prospect meetings - Coffee/meal expenses with prospects (50% deductible) - Printing costs for proposals - Software used to create proposals - Portion of internet/phone for business development calls - Research materials specific to potential clients My CPA always says "if you're not documenting it, you're donating it to the IRS

Has anyone used TurboSelf-Employed for tracking these kinds of expenses? My accountant charges me a fortune and I'm wondering if I could DIY with the right software.

Great question! I've been self-employed for about 5 years now and have dealt with this exact situation multiple times. The key thing to remember is that you can't deduct the value of your time, but you absolutely can deduct legitimate business expenses incurred during client acquisition. Since you mentioned spending 80 hours over two weeks, I'd suggest going back through that period and documenting every actual expense you had. This might include gas/mileage if you drove to meetings, any materials you purchased for the proposal, software subscriptions you used, coffee/meals during client meetings (50% deductible), and even a portion of your home office expenses if you qualify. One thing that helped me was creating a simple spreadsheet to track all expenses by potential client, even when deals don't close. That way I have documentation ready at tax time. The IRS allows these client acquisition costs as ordinary and necessary business expenses on Schedule C, but good record-keeping is essential. Also, since this client did sign the contract, all those expenses are clearly legitimate business costs that led to actual revenue. Make sure to keep copies of your SOW, meeting notes, and any receipts from that period.