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Tax Deduction Consulting: Independent Contractor Deductions Washington DC

The IRS uses the words necessary and ordinary to determine which expenses are allowable as a deduction against income on your tax return. Necessary and ordinary can mean just about any expense that is incurred in the conduct of your business and is common to it. It does not have to be essential even, but it can not be lavish. Read on for details.

Joseph Bonaccorsy
2011 Crystal Dr.
Arlington, VA
Company
Title: Financial Advisor
Company: Core Advisory, LLC
Type
Registered Investor: Yes
Education
Florida Tech /CFP
American Intercontinetal/BA - Maga Cum Laude
Institute of Business Finance/MSFS
Years Experience
Years Experience: 15
Service
Wealth Management,Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planning,Business Income Tax Planning,Fee-Only Comprehensive Financial Planning,Stock Market Alternative,Disability Insurance,Retirement Planning,Real Estate Investment Planning,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Distribu

Data Provided by:
Barbara J. OLeary (RFC®), CEP
(703) 370-7666
101 South Whiting Street Suite 203
Alexandria, VA
Qualifications
Years of Experience: 18
Membership
IARFC, NICEP
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Healthcare Accounts, Compensation Plans

Data Provided by:
B. Frank Doe (RFC®), CFP, MBA
(703) 272-7177
10560 Main Street, Suite 316
Fairfax, VA
Company
Frank & Darby Doe
Qualifications
Education: MBA
Years of Experience: 33
Membership
IARFC, FPA
Services
Invoice, Estate Planning, Business Planning, Retirement Planning, Tax Planning, Tax Returns, Mutual Funds, Annuities

Data Provided by:
Ari Group Llc
(202) 723-5059
1731 7th St Nw
Washington, DC

Data Provided by:
Multistate Tax Commission
(202) 624-8699
444 N Capitol St NW Ste 425
Washington, DC

Data Provided by:
Charles Stough
1940 Duke St, Suite 200
Alexandria, VA
Company
Title: LPL Wealth Planner
Company: WealthPath LLC
Type
Investment Advisor Rep: Yes
Education
University of Oklahoma/MHR
University of Florida/BA
Years Experience
Years Experience: 7
Service
Pension for Highly Compensated Owners,Income for Life/ Preserve Principal,Alternative Investments,Retirement Planning,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Hourly Financial Planning Engagements,IRA, 401k, Roth IRA, QDRO Rollovers,Wealth Management,Annuities,Alternative Asset Class Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planni

Data Provided by:
Mr. Vijay K. Khetarpal (RFC®), CFP, CHFC, CLU
(703) 356-4888
8607 Westwood Center Dr #300
Vienna, VA
Company
Integrity Financial Group, LLC
Qualifications
Education: B.A (Honors) Economics, St. Stephens College, DelhiAll India HS Humanities, Mayo College, Ajmer
Years of Experience: 27
Membership
IARFC, MDRT, FPA, SFSP, NAIFA
Services
Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Mr. Martin J. Beeson (RFC®), CEP, CSA
(866) 388-0110
2135 Defense Hwy Ste 6
Crofton, MD
Company
The Planning Companies
Qualifications
Years of Experience: 19
Membership
IARFC, NICEP
Services
Invoice, Estate Planning, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Charitable Planning, Education Plan, Healthcare Accounts, Charitable Foundations, Asset Protection, BuySell

Data Provided by:
Atab Tax Service
(202) 829-2822
536 Columbia Rd Nw
Washington, DC
 
Express Tax Svc
(202) 332-0400
1541 7th St NW
Washington, DC

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Tax Deduction Consulting: Independent Contractor Deductions

Independent Contractor Tax Deductions

An independent contractor, rather than work for a single employer, works for many clients. Independent contractor tax deductions are the same as a small business.

The IRS uses the words necessary and ordinary to determine which expenses are allowable as a deduction against income on your tax return. Necessary and ordinary can mean just about any expense that is incurred in the conduct of your business and is common to it. It does not have to be essential even, but it can not be lavish.

Among the common tax deductions for independent contractors would be the cost of a home office. In order to claim a portion of your home expenses as a legitimate business deduction, your home must be your principle place of business. If you maintain an office at home, but normally conduct your business at another location, the home office is a luxury and not an essential part of doing your business. If you meet or service clients at your home it is possible to claim a portion of your home expense as a deduction. This is usually done by calculating the square footage of the space devoted entirely to your business and comparing it to the total square footage of the home.

Another deduction common to independent contractors is for meals and entertainment. Again there are certain rules that apply to this deduction. It is necessary that business be conducted at the meal or event in order for it to qualify. In other words, you have to at least talk about business during the course of it. An event where talking would be impossible or difficult such as a theater would not qualify. If your entertainment expense is acceptable, only 50% of it is actually deductible.

Gifts are limited to $25 per recipient per year. If the gift costs less than $4 and has your name embossed on it, it does not count as a gift. The idea of gifts having your name on them, or other information about your services, actually means your gifts could be considered as advertising or promotional expenses. This should eliminate the $25 restriction, but be cautious here because there is a fine line involved between a gift and advertising. The decision might end up depending on the auditor and the situation.

Automobile expense is another common tax deduction used by independent contractors. All mileage driven for business purposes is deductible. There are two ways this can be done. The IRS provides a standard per mile allowance each year or you can keep your actual ex...

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