Sunday, May 15, 2016

Deduction Tips: Can I Deduct Laundry Services?

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Many solo estheticians believe that they can deduct much of their monthly electric, water, and laundry supplies per month when they do spa laundry at home. I am not a CPA or tax expert, but in doing my research I've spoken to some experts that say do this with great caution. Why? It is a red flag to the IRS, and a red flag can mean an audit?

You might not believe an audit is a big deal until you've lived through one. Is deducting laundry electric, water, and supplies worth the potential audit? Isn't it fair you deduct your expenses.

Yes, it is fair to deduct expenses, but it is equally fair to the IRS that you deduct expenses that are actually business expenses and not a combination of both. So, how do you track your costs per load of spa loads vs. your home loads? The easiest way is to do your laundry at a laundry mat where you can keep track of receipts, but if that isn't an option consider tracking it with a calculator http://energyusecalculator.com/electricity_clotheswasher.htm.

The last thing you want is to muddy the waters of your own laundry costs vs. your spa costs, and end up with an audit.



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