As you earn business income any reasonable expense you incur can be a potential deduction. Things such as business rent, advertising, business licenses, insurance, business loan payments (even if they are being given to friends who loaned you money), motor vehicle expenses, office supplies, and professional books—these are all tax deductible. If you use a car for pleasure and business, keep a log book of date, destination, purpose and mileage for each business trip. Calculate the total number of mileage you put on the car in the same period. For example if you drive 4000 miles total and you drive 1,088 for business, then divide this to find the percentage for total expenses relating to the car including gas, insurance, repair and licensing. If your office is in your home, you can deduct a portion of your residential rent or mortgage.

If you have a home business you can calculate deductible by finding the square area of you treatment space compared to the whole house. If your house is 800 square feet and your treatment room occupies 120 square feet. The work space is therefore occupying 15 percent of the house, so 15% of the total home expenses can be claimed.

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