Tax Tips for Consultants and Freelancers
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Tracking income & 1099s
Use separate business accounts. Save all platform statements and 1099s; reconcile to invoices.
High‑impact deductions
- Home office
- Equipment & software
- Professional education
- Travel & client meals
Estimated taxes & cash flow
Set aside a percent of each payment for taxes; align quarterly deposits with your billing cycle.
Retirement plans for solos
Consider Solo 401(k) or SEP depending on income and admin preference.
Contract clauses
Late‑fee, expense reimbursement, and milestone billing terms can stabilize cash flow and taxes.
Restaurant and Food Business Tax Deductions
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COGS & inventory
Choose a consistent inventory method; track waste and comps to protect margins.
Labor & tips
Maintain tip reporting systems; review service‑charge treatment and payroll tax handling.
Equipment & smallwares
Capitalize significant equipment; expense smallwares when policy allows.
Potential credits
Explore hiring credits and energy‑efficiency incentives for equipment upgrades.
Controls & records
Daily sales summaries, void/comp logs, and POS reports support tax filings.
Real Estate Agent and Broker Tax Strategies
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Income & broker splits
Reconcile commission statements; track referral fees and desk fees.
Vehicle & travel
Maintain detailed mileage logs and appointment books.
Marketing & staging
Deduct signage, photography, ads, and staging materials as ordinary and necessary.
Entity & payroll
Consider S‑Corp election when profits justify salary/distribution planning.
Retirement & benefits
Solo 401(k) or SEP can shelter variable income; plan around peak months.
E‑commerce and Dropshipping Tax Compliance
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Sales & use tax
Track state thresholds; check product taxability (e.g., digital goods, clothing variations by state).
Marketplace facilitators
Platforms may collect/remit for you; retain platform reports to support filings.
Inventory & nexus
3PL or warehouse locations can create nexus; register before collecting tax.
Returns & reconciliations
Match marketplace statements to your GL; resolve under/over‑collections.
International considerations
VAT/GST obligations arise when selling abroad; consider localized tax tools.
Construction Business Tax Write‑Offs and Recordkeeping
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Job‑costing & WIP
Use cost codes and WIP schedules to align revenue and expenses per job.
Equipment & vehicles
Depreciate heavy equipment; track mixed‑use vehicle logs for allocations.
Retainage & billing
Account for retainage receivable; recognize revenue under your chosen method.
Payroll & labor compliance
Certified payroll and prevailing wage rules may apply on public jobs.
Documentation
Maintain contracts, change orders, lien releases, and insurance certificates.