The list below is organized by category and covers various scenarios, including sole proprietors, self-employed individuals, or those with LLCs. Keep in mind that you should always consult a tax professional or accountant to ensure that you are complying with the latest tax laws and utilizing all possible deductions.
Business-Related Expenses
Office and Home Office Deduction- Home Office: If you use a portion of your home exclusively for business purposes, you can claim a home office deduction. The IRS allows two methods:
- Simplified Method: $5 per square foot, up to 300 square feet.
- Regular Method: Deduct actual expenses based on the percentage of your home used for business (e.g., utilities, rent, insurance, etc.).
- Home Office Supplies: Deduct any items specifically used for your business in your home office (e.g., desk, filing cabinets, printer).
- Stationery and Office Supplies: Pens, notebooks, folders, ink, paper, and other office supplies.
- Computers and Software: Deduct the cost of purchasing computers, tablets, printers, and any software necessary for your business (e.g., scheduling software, accounting software, video editing software for content creation).
- Phone and Internet: A portion of your phone bill (if used for business purposes) and your internet bill can be written off.
- Studio/Office Rent: If you rent space for training clients in-person or use a rented office for your business, this is deductible.
- Utilities: A portion of your utility bills (electric, water, gas) if you have a home office or a physical business location.
Marketing and Advertising
Website and Online Presence- Website Costs: Hosting fees, domain name registration, and any fees paid for website development or design.
- Social Media Advertising: Money spent on Facebook ads, Instagram promotions, Google ads, etc.
- SEO Services: Payments made to SEO specialists to optimize your website or improve your search engine rankings.
- Content Creation: Expenses for producing content like professional photography, video production, and editing services used to market your services.
- Printed Marketing Materials: Business cards, flyers, brochures, or any printed materials used for marketing.
Client-Related Expenses
Training Equipment- Purchase of Equipment: Cost of personal training equipment (weights, resistance bands, mats, etc.) for client sessions.
- Maintenance and Repairs: Any maintenance, repair, or replacement costs for your equipment.
- Client Gifts: Small gifts (under \$25 per person) for client appreciation can be written off as marketing or client retention costs.
- Travel Expenses
- Travel for Client Sessions: If you travel to meet clients, you can write off mileage (standard IRS mileage rate) or the actual cost of transportation (e.g., Uber, public transportation).
- Travel for Conferences or Training: If you travel for continuing education, conferences, or workshops, you can deduct airfare, hotel, and meals related to the trip.
- Meal Deductions: If you’re meeting with a client to discuss business, you can deduct 50% of the cost of the meal.
Insurance and Licenses
Professional Liability Insurance- Liability Insurance: Premiums for professional liability insurance, which protects you if a client gets injured during training, are deductible.
- Health Insurance: If you are self-employed and paying for your own health insurance, you may be able to deduct premiums for yourself and your family (depending on your tax status).
- Business Insurance: If you have business-specific insurance, including property or general business insurance, those premiums are deductible.
- Professional Certifications: The cost of certifications, continuing education courses, or memberships in fitness organizations (e.g., NASM, ACE, CrossFit).
- Business Licenses and Permits: Fees for any local business licenses or permits required to operate your business.
Education and Professional Development
Continuing Education- Workshops, Seminars, and Conferences: Costs associated with attending professional development courses, fitness certifications, or business-related seminars.
- Books: Any books, guides, or online resources related to fitness, nutrition, or business development that help you with client training or business operations.
- Subscription Fees: Monthly or annual subscriptions for online platforms you use for professional development (e.g., Mindbody, Trainerize, or any fitness course websites).
Health and Fitness-Related Expenses
Fitness Equipment and Supplies- Purchase of Training Gear: The cost of purchasing equipment for use during sessions, such as kettlebells, dumbbells, medicine balls, foam rollers, etc.
- Repairs and Maintenance: Repair costs for any training equipment.
- Supplements for Clients: If you provide supplements to clients as part of your business, these may be deductible.
- Nutrition Plans and Meal Prep: Costs associated with preparing meal plans or conducting nutritional assessments may also be deductible.
Taxes and Legal Fees
Tax Preparation and Filing Fees- Accounting and Tax Services: Fees paid to accountants, tax professionals, or bookkeeping services to help with tax filing, quarterly taxes, or business advice.
- LLC Formation: The cost of forming and maintaining an LLC, including legal consultation fees.
- Legal Advice: Any legal fees incurred for business-related issues, such as contract review, client disputes, or intellectual property protection.
Miscellaneous Business Expenses
Business Meals- Meals with Clients or Prospects: You can generally deduct 50% of the cost of meals directly related to business discussions.
- Business Bank Accounts: Monthly fees associated with maintaining a separate business bank account or business credit cards.
- Professional Software: Subscriptions to fitness-specific software (e.g., scheduling software, invoicing software, workout tracking apps, email marketing tools).
- Merchant Fees
- Payment Processing Fees: If you use PayPal, Stripe, or other payment processors, the fees they charge are deductible as business expenses.
Retirement Contributions (If Self-Employed or LLC)
SEP-IRA Contributions- SEP IRA: Contributions to a SEP IRA can be deducted as business expenses, lowering your taxable income.
- Solo 401(k): If you’re self-employed or have an LLC, you can contribute to a Solo 401(k) for retirement savings, which offers a higher contribution limit than a traditional IRA.
- SIMPLE IRA: Another option for self-employed individuals that allows both employee and employer contributions.
LLC-Specific Deductions
If you have set up an LLC, you may also be able to take additional deductions related to the structure of your business. LLC Formation Costs- LLC Filing Fees: Costs associated with setting up your LLC, including state fees and legal consultations.
- Operating Agreement: The cost of creating an LLC operating agreement, if applicable.
- Self-Employment Tax Deduction: If you’re self-employed, you can deduct half of your self-employment taxes (Social Security and Medicare) directly from your taxable income.
Final Notes to Consider:
- Record Keeping: Make sure you keep thorough records of all expenses, including receipts, invoices, and contracts. Use apps or software (like QuickBooks or Expensify) to track your expenses in real-time.
- Consult a Professional: Tax laws change, and deductions can vary depending on your exact situation. A tax professional or CPA can help ensure you are fully compliant and maximizing deductions.
🎥 Quick Wins from the Winning Daily Podcast
Check out these bite-sized videos packed with real strategies, mindsets, and stories from fitness entrepreneurs like you. Watch, learn, and apply them today.
White Rabbit Energy Drinks
