Separate the records before deciding the deduction
The IRS distinguishes business expenses from personal spending. Mixed-use costs must be divided between business and personal use; paying a personal bill from a business account does not make it deductible. Start by recording what was purchased, why it relates to the business and any personal use. Let your CPA determine the treatment.
Build a review packet by category
Use this as an organizing worksheet. The categories below do not promise a deduction, rate or method.
| Review category | Records to collect | Question for the CPA |
|---|---|---|
| Job materials and subcontractors | Supplier invoices, project references, payment records and agreements | How should these costs be classified and reported? |
| Tools, vehicles and equipment | Item descriptions, purchase and service dates, use records and prior asset schedules | Is this an expense, inventory item or asset, and when is a deduction available? |
| Vehicle and travel use | Dated business-purpose records, receipts and actual trip details | Which method and substantiation rules apply this year? |
| Insurance and professional fees | Policies, covered periods, invoices and payment evidence | Which part relates to the business and applicable period? |
| Software, advertising and website costs | Invoices, subscriptions, agreements and the work supplied | Does timing or capitalization change the treatment? |
| Home workspace or mixed-use services | Measurements, bills, business-use records and how the space is used | Is the specific use eligible, and what allocation is supportable? |
Mark missing records instead of reconstructing a convenient business percentage without evidence. Keep refunds, reimbursements and credits with the original transactions so the review can identify double counting.
Preserve evidence behind the totals
IRS recordkeeping guidance calls for records that show income and expenses, supported by documents such as invoices, receipts and payment evidence. Expense support should identify the payee, amount, date and business purpose. A combination of documents may be needed. Asset records have their own acquisition, use and disposal information.
A useful working file can link each transaction to its supporting documents and job, with a separate note for an unresolved question. Keep the original evidence accessible when sharing the summary with the preparer. Ask the CPA to confirm retention requirements for your circumstances; this page does not set a universal retention period.
Do not roll last year's limits forward
Annual rates, depreciation rules and deduction limits require the applicable year's guidance. This page deliberately supplies no mileage rate, Section 179 limit, vehicle write-off promise or universal meals percentage. The linked Publication 334 is labeled 2025 at the time checked, so its annual figures must not be relabeled as a complete 2026 rule set.
Keep self-employment tax, federal income tax and state tax separate. Our ordinary self-employment tax worksheet has a limited 2026 scope and also awaits CPA review. It does not calculate deductible job expenses or a quarterly payment.
Keep business planning separate from tax treatment
A website proposal should describe scope, ownership and ongoing costs before a preparer decides how to treat the spending. Our website pricing page explains the service scope and starting prices. No tax saving is part of that offer.
Sources checked November 11, 2026
- IRS income and expense FAQ: personal expenses and mixed use.
- IRS recordkeeping guidance: supporting documents and asset records.
- IRS business expense resource guide: starting points for the applicable topic and year.
- Publication 334, labeled 2025: verify its year before using annual provisions.
CPA review is pending. This is a preparation checklist, not a deduction determination or tax return.