1)      Track all personal and business transactions and review both with an accountant to identify legitimate business expenses that were improperly classified as personal expenses. In the future, make sure the business pays for those types of expenses directly to avoid co-mingling. For example: home office deductions would require you to have captured all of your household expenses including landscaping, home owners dues, utilities, not just your mortgage or rent.

2)      Share business expenses with your person and business (e.g. home, car). Don’t try to split between personal and business, put all expenses in personal books or business books, and allow your accountant to allocate the appropriate % of business use to your tax return. Generally, we include 100% home expenses on personal books and 100% car expenses on business books. The adjustments are made at the end of the year. 

3)      Invest in yourself as the business owner and get the additional benefit of the tax deduction. Professional and personal development are tax deductible as a business owner; whereas not deductible as an individual. For example: we often recommend that our clients attend coaching or programs on our Partners page. What we often don't mention is that you are able to deduct those investments in themselves on their business tax return as legitimate business expenses.