Posted by NCLisa on 3/13/07 5:51pm
Msg #179736

Expenses and Deductions

I am just curious as to what some of you are using as deductions and expenses on your taxes. I've talked to some other notaries in this area recently and was shocked at their ideas of what they could or could not deduct.

One notary told me that if you can't claim the home office deduction, then you can't claim mileage for closings, supplies, drop offs, etc. Had another notary tell me that she wrote off as a business expense the audio books she rents or buys to entertain her while driving. A title abstractor adds a $25 excess mileage fee to go to a few counties, then uses claims the mileage. I was really shocked at some of the things people were using as deductions and expenses.

What do you feel are legitimate deductions/expenses? Which do you claim but think you are cutting it close on?

Reply by Genkichan on 3/13/07 6:34pm
Msg #179751

The first notary is an idiot, the second notary is playing with tax fire, and the title abstractor can charge whatever he/she wants as a travel fee (if allowed by her state), but can only deduct actual mileage driven via the IRS published rate per mile (which may or may not total $25.00 for any particular trip) on tax return. Doesn't sound like he/she is doing anything wrong according to the info in your post, unless he/she is deducting the full $25.00 regardless of actual miles driven...in which case he/she is also an idiot.

I deduct everything from insurance premiums, mileage, and office supplies to continuing education and licensing fees, postage/advertising fees and membership dues to any associations. I also deduct full cell phone and internet charges since that is majority used for business purposes. I don't take a home office deduction because I'm a part-timer and don't use a specific square footage of my house solely dedicated to this business. I have my computer goodies set up in a corner in the basement, and we use this space for personal stuff too. I don't deduct big computer purchase for that reason, but I do deduct laser printers (required for this biz), ink, paper, etc. 100% since majority is used for business. I take every penny I can find for deductions outside of the home office thing, and I have no qualms about my deductions. I read the tax code and have a preparer help me stay in line.

Those other notaries you were talking to need some serious HELP! ;-)

Reply by NCLisa on 3/13/07 8:10pm
Msg #179766

What the abstractor is doing is billing their client for the mileage, then claiming the deduction on their taxes. I thought you could do one or the other, not both. But then, it's nothing I have to worry about.

Reply by John_NorCal on 3/13/07 8:41pm
Msg #179769

As long as they're claiming that charge as income they're o.k.

Reply by Susan Fischer on 3/13/07 10:32pm
Msg #179794

Thanks, John - good clarification. n/m

Reply by JanetK_CA on 3/13/07 10:43pm
Msg #179797

Getting reimbursed by an employer for actual miles driven would make it disqualified as a deduction, but as a business owner, it's more a question of income collectively in one column (figuratively) and actual expenses in another, like John said.