📅 Day 2: 3 Common Tax Myths Small Business Owners Still Believe

 📅 Day 2: 3 Common Tax Myths Small Business Owners Still Believe

Running a business comes with more than just offering great services or products — it also comes with figuring out what’s fact and what’s fiction when it comes to taxes. And unfortunately, there’s a lot of misinformation out there.

Let’s clear up three myths I hear all the time — and what the truth actually is.

💭 Myth 1: “If I use my personal credit card, I can’t deduct the expense.”

Not true!
You can still deduct legitimate business expenses paid with a personal card — as long as they were truly for the business. The key is documentation: save receipts and make a note of why each purchase was business-related. (Still, I always recommend separating your accounts ASAP — it makes tax time so much easier.)

💭 Myth 2: “A home office deduction increases your chance of an audit.”

This one is outdated.
If your home office meets the IRS rules (used regularly and exclusively for business), then you’re allowed to take the deduction. The IRS isn’t targeting home offices — they’re targeting unsupported claims. When your space and records are legit, there’s nothing to fear.

💭 Myth 3: “If I didn’t make much money, I don’t have to report it.”

Careful.
If you earned $400 or more in self-employment income (even side gigs or part-time work), the IRS requires that you report it — even if no one sent you a 1099. The threshold is low, and skipping it can create bigger issues later.

Bottom line?
Tax rules may seem overwhelming, but most of what you need comes down to accurate tracking, clear separation of business/personal finances, and a little bit of education — which is exactly why this blog exists.

Catch you tomorrow for Day 3: What Actually Counts as a Business Deduction — it’s more than you might think!