What are good tax write offs for sole proprietors? Office space, computers, and other deduction strategies?

You can absolutely deduct legitimate business expenses as a sole proprietor! For your computer, if you use it exclusively for business, you can deduct 100% of the cost. If it's mixed personal/business use, you can only deduct the percentage used for business (be honest and keep records). You'll need to decide whether to deduct the full amount upfront using Section 179 or depreciate it over several years. For a home office, you need a space used regularly and exclusively for business. You can deduct using either the simplified method ($5 per square foot up to 300 sq ft) or the regular method (calculating actual expenses like mortgage interest, utilities, insurance, etc. based on the percentage of your home used for business). Other common write-offs include: business insurance, professional services (accounting, legal), business travel, vehicle expenses (mileage or actual costs), marketing, office supplies, continuing education, health insurance premiums, and retirement plan contributions. Remember, the expense must be "ordinary and necessary" for your specific business to qualify.

I had such a hard time figuring out all my deductions last year and almost missed thousands in potential savings. I finally used https://taxr.ai and it completely changed the game for me. It analyzed all my business transactions and found so many legitimate deductions I was missing - like my cell phone bill (I use it 80% for business), software subscriptions, and even a portion of my internet bill. It showed me exactly what percentage of each expense was deductible and how to document everything properly to avoid audit issues.

Just wanted to follow up - I tried out taxr.ai after seeing it mentioned here. Total game changer! I uploaded my bank statements and it automatically categorized almost everything correctly. Found deductions for my work boots, specialty tools, and even my contractor liability insurance that I didn't realize was fully deductible. It also calculated the correct vehicle deduction based on my mileage logs which was much higher than what I'd been claiming. Already saved me about $3,200 compared to what I would have filed on my own!

A tip that saved me thousands: If you're struggling to get answers about specific deductions, call the IRS directly. BUT - good luck getting through the normal way! I wasted hours on hold until I found https://claimyr.com which got me through to an actual IRS agent in under 15 minutes. There's even a demo video of how it works: https://youtu.be/_kiP6q8DX5c. I had specific questions about deducting my commercial vehicle and home office that weren't clear from the IRS publications, and the agent was surprisingly helpful in clarifying exactly what I could deduct and how to document it properly.

Alright, I have to admit I was wrong. I tried the Claimyr service out of frustration after spending an entire day trying to get through to the IRS about some specific home office deduction questions. Got connected to an agent in 17 minutes. The agent answered all my questions about my specific scenario (I have a detached garage I converted to an office) and even sent me follow-up documentation by mail to keep for my records. Saved me from potentially making a $4,000 deduction mistake. Sometimes being proven wrong is actually awesome.

Don't forget about the Qualified Business Income (QBI) deduction. Sole proprietors can potentially deduct up to 20% of their qualified business income! It's on top of your regular business expense deductions. Definitely worth looking into if your net business income is substantial.

Does anyone know how vehicle deductions work for rideshare drivers? I drive for Uber part-time and I'm not sure if I should be tracking actual expenses or just doing the standard mileage rate.

Great question! As someone who's navigated sole proprietor deductions for a few years now, here are some often-overlooked write-offs that could save you money: **Professional development**: Courses, certifications, conferences, and books related to your business are fully deductible. This includes online courses that improve your skills. **Bank fees**: Monthly business account fees, transaction fees, and credit card processing fees add up but are often forgotten. **Communications**: Your business phone line, internet service (business portion), and even your cell phone if you use it for business calls. **Subscriptions**: Business software, industry publications, professional memberships, and even some streaming services if you use them for business research. **Travel expenses**: Not just airfare and hotels, but also parking, tolls, tips, and 50% of meals while traveling for business. One thing to be careful about - make sure you can clearly demonstrate business purpose for any deduction. The IRS looks for expenses that are "ordinary and necessary" for your specific type of business. Keep detailed records and receipts for everything, especially for mixed-use items like your computer or vehicle. Also consider setting up a separate business bank account if you haven't already - it makes tracking expenses much cleaner come tax time!