At Least It's Deductible

Well here it is — tax season again. OK. Admittedly, tax season is pretty much over at this point, what with the deadline so close that my tax preparer-clients are now counting it down in hours.

Nevertheless, I have only begun to fire up the calculator. No. I don't use Quickbooks — or any similar software. And yes, I do my own taxes. But nobody wants to hear about that ...

As I'm sifting through stacks of receipts and tallying them up I come across items that make me think to myself, "Oh good grief! I can't believe I spent that much money on that!" Which congers ghost-like voices in my head of every time someone has said to me, "Well, at least it's deductible."

Do people not understand how taxes work? If it costs me $1,500 to attend a tradeshow, I spend $1,500 to attend that tradeshow! Deducting those expenses from my taxes does not mean that I get back that $1,500! I still spent the money. Yeah, it's great that I don't have to pay taxes on that money, but if that money had gone into my pocket as profit then I would only pay a percentage of that amount in taxes.

I don't know the exact percentage, but most people would agree that they'd rather keep $1,125 than spend $1,500. So how is it supposed to be a consolation that I can deduct the $1,500?

I mean, the example of tradeshow expenses is somewhat moot to begin with — who doesn't want to go to a tradeshow? So it's hard to feel really bummed out by what they cost. But there are plenty of business-related expenses that do hurt. I'd much rather have 65%-75% of the phone bill back. And the insurance. And the rent.

Heck, if I could get 70% of those expenses back in my pocket, writing the check to the IRS would be far less painful. As it is ... I still have few more hours to procrastinate. And at least it's deductible, right?