When you are a massage therapist, you are assisting others to reduce their stress levels. However, your own stress levels may go up when it comes to dealing with your taxes and the bookkeeping processes necessary to keep your business running smoothly. While it is best to consult with a tax professional or accountant, such as BTL & Company, P C, Tax & Accounting in Beaverton, OR, you should still be aware of these four potential tax deductions that are available to you and individuals within your profession.
As part of your business, there are specific necessary supplies that you need to have to effectively meet the needs of your clients. Those supplies would include a massage table or tables, massage oils and other items that contribute to a relaxing environment for your clients. This could include music, a music player and even essential oils that are used as part of the massage experience.
In addition, you will have business expenses that are related to your business. Some of these would include rent for your massage office, utilities, the cost of accounting software or the work of a bookkeeper, and any additional cleaning supplies that are part of the daily running of your business.
Additionally, if you work out of a home office, then you may also be able to deduct a portion of your home’s utilities and mortgage for the portion of square feet that are devoted to your business and its administration. Of course, as part of that deduction, you will need to keep copies of bills, receipts and even canceled checks that can verify the expenses that you are claiming. Although you will not turn this in with your tax return, you will want to keep copies of the backup for your tax records.
If you have to travel to your client’s home or to specific conferences that are for continuing education, then you may be able to deduct those travel expenses. This includes tracking the mileage on your vehicle, costs of lodging, any airfare, and meals while you are away from home and traveling for business. However, if you are doing a standard daily commute to your place of business, this cannot be deducted.
Therefore, it is important to keep a detailed mileage log for these travel expenses. While you might not have to provide receipts, the detailed log will be important if you are ever questioned about these expenses by the IRS.
If you hire any assistants, receptionists or even a client coordinator, you may be able to deduct the cost of their salaries, benefits and any incentives that you may provide in the course of doing business. If you choose to use any independent contractors, you will also want to track those expenses, as they may also be deductible.
Additionally, if you provide any educational materials to your employees, these may also be deductible. This includes any conferences that you and your employees attend, books, training seminars, and even educational movies. So you will want to track all expenses related to continuing education, both for yourself and your employees. This would not only include the actual cost of the conference or continuing education materials, but the travel costs that you incur to get to the location of the training.
As we have discussed, there are deductions for all the expenses related to continuing educational conferences. However, if you choose to go back to school for additional training or certification, then those costs may be deductible as well. This includes the tuition, books, conference fees and workbooks. The point of this training is to get additional information about massage techniques and the latest research in your field.
Additionally, as with other educational efforts, you can deduct travel and lodging costs to attend these trainings and certification classes to improve your skill set. As a result, you will be able to increase the scope of your business, while at the same time enjoying additional tax deductions.
As you can see, running your own massage business has plenty of unique opportunities for deductions, but it requires that you maintain accurate records with the proper backup. If you do, then you will be able to answer any IRS questions.
Click on the link below to contact a tax professional or accountant at the office of BTL & Company, P C, Tax & Accounting in Beaverton, OR, who can assist you in determining what deductions your business may qualify for as part of the tax filing process.
BTL & Company, P C, Tax & Accounting