June -
I am a web designer and as such purchase software and use software programs at yearly fees for seo, host websites. I am at a loss to know which category software or web hosting go into using the self-employed list from Uncle Sam. Also what about domain registration. I would greatly appreciate your input.
Thank you.
Joan, Scottsdale, AZ
Hi Joan,
All the expenses you mention are deductible. And because they are legitimate deductions, even if you put them in the wrong expense category, you would not lose the deduction in an audit.
Software purchase or yearly fees can go into the supplies category. Or they could be other expenses: software yearly fees. Were I doing your return, I would look at your total supplies cost and your total software costs. If both were high I'd keep the two expenses in separate categories. Likewise, fees for your clients can go into other expenses: client hosting and other expenses: client domain regis.
Hosting costs for your own site could be advertising expense.
Whatever you choose, be consistent from one year to the next.
Best,
June
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