What Can I Expense on My Taxes as a Fitness Instructor?

Hi there, I hope you are having a great day.

Let’s begin our newsletter with something funny.

I saw a lady in tears at the store. She said she had lost an envelope with her tax refund inside.

I gave her $100 because I had just found about $1600 in the parking lot.

As a self-employed fitness instructor, you are a business. As such, you need to think like a businessperson. That means maximizing your deductible business expenses to lower your taxable income. The IRS only taxes you on your net business income. The more expenses you can claim, the lower your tax liability will be.

Equipment and Gear

Any equipment or gear you buy exclusively for the use of your clients qualifies as a legitimate expense. A new set of weights, mats, pull-up bars, a treadmill, or even a new sound system may all qualify as business expenses for a fitness instructor, as long as they are for business use only.

Oh, and don’t forget your studio rental fees. You can fully deduct those as well.

Music CDs and Exercise Videos

If you conduct group fitness sessions, you might have to invest in music and exercise videos to prepare and conduct your sessions. These expenses are all tax deductible. It is important that you keep receipts of each purchase in case you are audited by the IRS.

Insurance

Any insurance product you purchase to protect your business is a tax-deductible expense. Fitness instructors are particularly at risk of being on the wrong end of a professional negligence suit brought by members who are customers who get injured during workout routines. The National Federation of Professional Trainers recommends that personal trainers carry liability insurance, which is a valid business expense. As a self-employed worker, you can also claim personal medical insurance contributions as part of your business expenses.

 Continuing Education Expenses

Credentials are an important element of most professional occupations, and fitness instructors are no exception. You can deduct any education expense you incur that is related to fitness instruction, such as continuing education courses and seminars, However, education expenses in fields that are not related to your fitness instructor business, such as training to qualify for a new job, do not qualify as a deductible expense.

Ordinary and Necessary

The key principle to understanding when an expense is eligible as a business deduction is whether it's both ordinary and necessary for the operation of your fitness business. This includes bank service charges on your business account, advertising and marketing costs, fitness journals, fitness industry association dues, and business travel expenses. On the other hand, a new sports car might be difficult to justify as an ordinary and necessary business expense, even if you use it for business on occasion. A good rule of thumb when determining if an expense is eligible is to consider whether you would feel comfortable justifying it to a tax auditor.

Previous
Previous

6 Ways to Boost Your Social Media Presence