A Checklist of Expenses and Deductions for Your Yoga Business
Deducting your yoga business expenses from your income reduces your tax bill. Deductible expenses are those that are seen as “ordinary and necessary” for conducting business. Use the following checklist as a guide to ensure you capture all of your yoga business expenses when filing your taxes.
Any materials for marketing your yoga business (e.g. flyers, signage, ads, branded promotional items, or events) and the cost of developing those (e.g. designer costs).
✓ Business Insurance
Insurance intended to protect your business (e.g. fire, theft, flood, property, general liability, workers’ compensation).
✓ Car Expenses
The business portion of your actual car expenses (e.g. gas, insurance, registration, repairs and maintenance) or public transit expenses (e.g. trains) if you use local transportation.
✓ Contract Labor
Any payments made to independent contractors (e.g. a contracted web developer or social media marketer).
✓ Depreciation and Section
Depreciation expense on business assets (e.g. computers, studio equipment, tools, furniture, cars).
Workshops, seminars, teacher training programs, and also magazines, books, apps, podcasts, that are related to your yoga business.
✓ Employee Benefit Programs
Costs related to benefits you provide your employees (e.g. health or life insurance, education assistance, accident, or liability insurance).
✓ Employee Wages
Wages paid to employees.
✓ Home Office Deduction
Expenses related to a home office (e.g. business portion of rent, utilities, repairs, insurance, mortgage interest).
You can only write off the portion of interest related to business for credit cards, business lines of credit, interest on car payments, etc.
✓ Inventory (Cost of Goods Sold)
If your studio sells apparel, yoga mats, accessories, or jewelry, you can deduct the cost of goods sold.
✓ Legal / Professional Services
Professional fees related to your business (e.g. attorneys, tax preparers, accountants, other professionals).
Meals that you had with a client and during which you engaged in business discussions, or those incurred while traveling on an out-of-town business trip.
✓ Rent or Lease (vehicles, equipment)
Rent or lease payments on business property not owned by you (e.g. machines, equipment, vehicles).
✓ Rent or Lease (other business property)
Rent or lease payments on items that aren’t vehicles or equipment (e.g. studio or land rent), including any government taxes on those items.
✓ Repairs and Maintenance
Repairs or maintenance on machines, equipment, or studios (e.g. repainting, fixing computer/laptop).
✓ Studio Expenses
Studio expenses (e.g. cleaning services for studio, general studio maintenance) that don’t have a separate category.
Various business taxes (e.g. your share of FICA if you have employees) or licenses (e.g. state or local licenses.
Travel costs related to business trips (e.g. lodging, airfare or rental cars, Uber/Lyft). The travel must be overnight, away from your residence and primarily for business.
Utilities related to your studio (e.g. electric, gas, garbage, water).
✓ Other Expenses
Any other business expenses that are ordinary and necessary (e.g. banking fees, business gifts).