<h1>Understanding Business Expenses and Their Tax Implications</h1>

Tyler? Yep. Looks like you made $100,000 in your small business revenue this year, so you owe us. I'll save you the trouble.

<h2>Cost Breakdown</h2>
<ul>
 <li>$50,000 of that was cost of goods sold.</li>
 <li>$5,000 of that was for my car lease payments. Don't worry, it's not my daily driver. Otherwise, I would deduct just the business portion of what I use.</li>
 <li>$5,000 of that was for travel to see clients. This includes hotel fees, plane tickets, Wi-Fi, and meals with clients. I've got receipts.</li>
 <li>$5,000 of that was for continuing education to maintain or improve my job skills.</li>
 <li>$15,000 of that was for our office rental. Don't worry, it's not registered in my name. It's under our LLC.</li>
 <li>$5,000 of that was for the computers and software we use for our business throughout the year.</li>
 <li>$10,000 of that was for payroll expense because we have one W-2 employee who helped us to advertise.</li>
 <li>$4,601 of that was actually on advertising, so that leaves $399.</li>
</ul>
$1 under when you'd owe us self-employment tax. We hadn't thought of that.