Tax time is upon us and deducting business expenses is a right. Deduct legitimate business expenses and if can, don’t file any. Reason being it can affect negatively how much mortgage one qualify for.
For a self employed tax filer, the logics is to deduct some business expenses. Also if responsible for paying your own taxes and social security from ones pay, be careful about the amount of expenses in dollars that’s deducted at tax time.
If an employer collects taxes from a W2 employee, there is usually no reason to have business expenses. May get a bigger tax returns but it reduces the income used to qualify and exposes the filer to tax audit.
Example: Income of $45,000 and business expenses of $10,000
Therefore qualifying income is reduced to $35,000
Think about it carefully