💸 YES! PLEASE use your biz card for a non-deductible biz expense!

Hello, hello!

I know. It sounds almost sacrilegious, doesn’t it? Me giving you permission to use your biz card for non-deductible biz expenses.

Here’s the point I’m trying to make: there is a difference between deductible and non-deductible business expenses.

Deductible expenses are those deemed “ordinary and necessary” for your business by the IRS.

Those are the things you're allowed to “write off” as deductions when doing your taxes.

But just because you can’t write it off as a business expense on your tax return doesn’t mean it’s not a legitimate expense.

The ONLY thing it means is that it’s not deductible on your tax return.

(Should I insert the “it’s a write-off” gif of David Rose here? Or is that played out by now? I’d love to hear yall’s opinions!)

What are some examples of non-deductible business expenses, you ask?

Good question! Things like:

• Clothing you purchased to wear as a keynote speaker (renting an outfit is a different story, though!)

• Clothing to wear as a personal trainer/yoga teacher

• Entertaining clients/colleagues (ex: taking a client/prospective client/client to a show, concert, etc)

• Social clubs (ex: gym memberships, tennis clubs)

While all the above aren’t deductible on your taxes, it’s fine for you to use your business card to pay for them.

And you probably actually WANT to! Why? Because using business funds to pay for those expenses you wouldn't have otherwise incurred lets you keep track of the true cost of doing business. And the true cost of doing business is definitely something you want to know!

Note: My ONLY ask with all this is that you clearly categorize things when doing your bookkeeping. That way there's no mixing of deductible and non-deductible expenses. If in doubt, categorize something as "ask accountant" and get help come tax season!)

P.S. If you're looking for a place to ask all those random questions you have, like "Remind me: is the killer pants suit I just bought for my speaker gig a write-off?", ​Back Pocket Bookkeeper​ is the place to be. It lets you keep me in your (proverbial) back pocket for questions like this, and bunches more!