Can I Write This Off?

Can I write off We Transfer subscription

TL;DR

A WeTransfer subscription is generally deductible as a business expense if it is used for business purposes, such as transferring files to clients or collaborators.

Detailed Answer

The cost of a WeTransfer subscription can be deducted as a business expense under IRS guidelines if it is used primarily for business purposes. This includes transferring large files to clients, sharing project materials with team members, or any other business-related activities. However, if the subscription is used for both personal and business purposes, only the portion attributable to business use is deductible. For example, if 80% of the usage is for business, then 80% of the cost can be deducted. It's important to maintain records that demonstrate the business use of the service, such as logs of transfers or client communications.

Where to Put It on the Tax Form

Schedule C, Line 27a, which is used for other expenses.

Real World Example

A freelance graphic designer uses WeTransfer to send large design files to clients. The annual subscription costs $120. Since the designer uses WeTransfer exclusively for business, they can deduct the full $120 on Schedule C, Line 27a.

Audit Risk & Documentation Tips

The audit risk for this deduction is Low, provided that the taxpayer maintains proper documentation. Keep records such as invoices for the subscription, logs of file transfers, and any related client communications to substantiate the business use of the service. It's also advisable to document the percentage of business versus personal use if applicable.

Can I write off We Transfer subscription

TL;DR

Detailed Answer

Where to Put It on the Tax Form

Real World Example

Audit Risk & Documentation Tips

IRS Reference

Relevant Industries

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