Year-End Tax Tips for Inspectors

by Nick Gromicko, CMI®
Here are some year-end tax tips for inspectors:
  1. Membership in InterNACHI is tax-deductible, so if you are due to renew your membership in January, February or March of 2020, you might want to renew before December 31, 2019, and take the deduction.  The same is true for other business expenses. It matters not when an invoice is due, if you paid for something in 2019, you can deduct it in 2019.

  2. Print off your tax-deductible receipt for dues here.

  3. The reverse is true, too. If you do a bunch of inspections between Christmas and New Year’s Day, you might just want to hold the checks and deposit them on January 2, 2020.

  4. Putting a business expense on your credit card in the month of December 2019 is deductible in the 2019 tax year, even though you don’t pay on your credit card until 2020.

  5. Also, if you collect credit card payments at the end of December for inspections you have performed, you may want to wait until New Year’s Day to process the batch, as they aren’t considered income until the year the payments are actually deposited into your checking account.

  6.  The reverse is not true about checking accounts. A check written for a business expense and put in the mail in December 2019 can be deducted in 2019, even though the check doesn’t clear until 2020.

  7. New Year’s Eve falls on a Tuesday, a day the U.S. Postal Service is in operation. Therefore, any check for business expenses written on New Year’s Eve is deductible in 2019, even though it might not come out of your bank account until 2020.

  8. If you apply for your Certified Master Inspector® professional designation before December 31st, you can deduct the entire fee on your 2019 tax return.

  9. Cozy Coats for Kids® is a registered charity.  Give your inspection company's website an SEO bump by making a tax-deductible donation.  Cozy Coats for Kids® will then list your inspection company's contact information on their Donors Page forever.