I’ve written the last few days on how attorneys can better manage the finances of their law firm now that the new year is upon us. This included four ways for attorneys to keep more of their revenue as well as how to better handle your law firm’s accounting in 2015. With tax time coming it’s important to make sure you don’t miss out on three important deductions available to lawyers.
Don’t forget to write off your mileage for 2014 – All those trips to and from court, to depositions, and any other trips you had to make during the work day, are deductible. This is a big one many attorneys look over.
Many lawyers can take the home office deduction – Do you have a room of your residence that is a dedicated office? If so then you can take the home office deduction. This is available even if you rent, rather than own, your home. A big thing to remember with this is that the room must be exclusively used for an office and for no other purpose.
Max out your IRA contribution – If you didn’t contribute the maximum amount to your IRA then you can still do so. You are actually permitted to make contributions until April 15th, 2015 and count them against your 2014 taxes. Maxing out your IRA can save you a few bucks on your tax bill.
These deductions, while pretty standard, are missed by many attorneys I’ve talked to. Make sure you get them in for the coming year.