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I'm a new independent travel agent under and agency what can I use as tax deductions for this year?

I work from my home office and will have a 1099 at the end of the year I need to know what is legit business deductions.  I traveled with a group on a cruise in February are any of those expenses deductible? I will be traveling in August for a Training session and extended my trip to do some site visits would any of these expenses be deductible? As far as the home office what do I need to keep track of for deductions.
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3 Replies
JulieS
Expert Alumni

I'm a new independent travel agent under and agency what can I use as tax deductions for this year?

Yes, when you are self-employed almost anything you use for your business is a tax deduction. 

 

Travel for business is allowed when it is an ordinary and necessary expense for your industry. That is the standard applied to all of your business expenses. 

 

For example, when working from home, if you must have  a computer and a phone for your work, those items would be ordinary and necessary. 

 

If you bought a statue for your home office, that would not meet the standard, because it is not necessary for your work. 

 

If you qualify for a home office, you can either deduct a standard amount based on the square feet of your office, or a business percentage of your household expenses. 

 

If you deduct the standard amount, you just need to measure your office and calculate the square feet. 

 

If you choose to deduct your actual expenses, you also need to measure your office and the total square footage of your home, and you should keep track of the following:

 

  • Rent, or mortgage interest and property taxes
  • Renter's or Homeowner's insurance
  • Utilities
  • Maintenance or HOA fees
  • Repairs
  • Miscellaneous like pest control, security cleaning

 

Click here for more information. 

 

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I'm a new independent travel agent under and agency what can I use as tax deductions for this year?

If the business is not registered and currently operates as a sole proprietor, along with other side businesses, can the expenses be lumped (and any income) under 1 business category in schedule C?

I'm a new independent travel agent under and agency what can I use as tax deductions for this year?

Not if they are different businesses. You'd file a a Sch C for each  type of business to determine profit and loss from each business. 

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