As a new agent this year, I love that KW hosted an Income Tax class that taught me the nitty gritty of what we can write off on our taxes.

Sheryl Lucas, KW agent and H&R Block tax advisor, taught us alot today.

Here's some of the things I learned today:

Cell phones cannot be written off unless it's 100% used for business. Or if you pay per minute ($ amount shows per line on your bill). Shared family lines cannot count. (So, I guess I'm getting a business line!)

Keep your records for 7 years! Federal- you can amend returns back 3 years. State (MI)- is 4 years.

Any KW gear/clothing with our logo can be written off as marketing expenses.

15.4% must be paid for Social Security and taxes.

A good test for a business expense that the IRS uses is if it's "ordinary and necessary".

Differences between advertising and marketing: advertising= houses, marketing= yourself

Contract Labor- Closing agents and external marketing reps, paying someone to do door to door

Using a credit card to pay for for business expenses- you can write off any interest incurred.

You can write off the service contract on your computer (Geeksquad, etc.) can be written off under Repairs and Maintenance.

Purchasing something to close a sale- ex. Seller took fridge and I bought one to replace or if I paid for carpet cleaning services can be written off under Supplies.

The party I threw and handed out business cards and got the thank you cards for the attendees addresses can be written off as a marketing expense! The prizes for the raffle too!

Event tickets can be written off as follows: If I don't go with the client, I can deduct either as entertainment, subject to 50% or as a gift subject to the $25 rule.

The interest on my car loan can be written off too!

Part 2 of the seminar is next week, so I'll blog more.

Please share any other write off tips you may have too!