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What info to keep records of for the IRA/tax purposes and deductions?

Right now, I keep track of my miles. I'm starting to track my income by documenting per month the type of sit, name of pet client, dates of the sit, and total profit made per sit. Is there any info I'm missing? I board dogs in my home and buy items for them, such as poop bags and cleaning solutions. Can I deduct expenses like bills for the part of the house that is mainly used for dog boarding? For items to be deducted, do I keep the receipts?

Any tips on an efficient way to keep track of your income and deductions or what can be deducted when using your home and other items to board is much appreciated.

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Walt G.

My best advice is to discuss your business income and possible deductibles with a tax professional

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Karen R.

Yes, keep records of all items you buy solely for pet sitting. However, do not attempt to claim a portion of your home as a business expense. You're asking to be audited and it is going to be disallowed.

Comments

This is incorrect. You can deduct a % of home expenses from your income if you use your home for business. This is totally normal. I'm not a tax professional, but I use one, and I deduct a % of home expenses for my business. Keep good records/follow rules, and possible audits will never be an issue.