I once had a client who was a freelance graphic designer. She was convinced that she could deduct the cost of her new computer as a business expense in full in the year she purchased it. While understandable, this was a misconception. I explained that the IRS generally requires such assets to be depreciated over a period of years, reflecting their useful life. We discussed the Modified Accelerated Cost Recovery System (MACRS) and how it applies to computers and other technology. In the end, she was able to take a significant deduction, though not the full amount she initially anticipated. This experience underscored the importance of understanding tax laws and seeking professional advice to avoid costly mistakes.
Clients don't realize that the need to keep receipts for expenses in case the IRS comes asking. We had a client with $40,000 in business expenses but no receipts. The IRS auditor did not want to cooperate and disallowed most of the expenses. My recommendation is to save electronic copies of your receipts. Simply take a picture of the receipt with your cell phone. As long as the expenses are reasonable, this will "audit proof" your tax return.