Comments for What Can I Deduct On My Taxes?

Comment on At what point can you take tax deductions for businesses? by tro

tro — Wed, 28 Jul 2010 04:36:21 +0000

when you actually are ‘open for business’
the expenses you incur getting ready to do business are preopening expenses and amortized over 120 months(except a provision for a one time up to $5000 write off immediately)
and for the LLC, don’t bother until you find this is truly a profitable enterprise, there are costs incurred to establish an annual minimum tax regardless of profit and more complication tax reporting
go to http://www.irs.gov and request publication 334 to help you

Comment on At what point can you take tax deductions for businesses? by Bostonian In MO

Bostonian In MO — Wed, 28 Jul 2010 04:36:21 +0000

You can’t deduct any costs until your business is actually up and running. Costs incurred now are treated as start-up costs. You can claim a portion of them in year one and then amortize the remainder over time.

An LLC is a total waste of money for the vast majority of small businesses. It unnecessarily adds to expenses, often generates higher taxes and fees at the state level, and only offers limited liability protection since the liability veil is easily pierced on a closely-held corporation.

What you SHOULD do is sit down with your respective attorneys and hammer out a formal partnership agreement. While not necessary for tax purposes, most informal partnerships degenerate into finger pointing and "he said, she said" sessions that result in collapse of the business even before it’s off of the ground.

Comment on At what point can you take tax deductions for businesses? by waggy_33

waggy_33 — Wed, 28 Jul 2010 04:36:21 +0000

To start with I would suggest that you contact a good CPA to advise you on the form of business you should be operating as. Generally, an LLC makes sense so as to limit your liability. I think is more than worth it to consult with a CPA to get it right up front so that you get started along the right path.
The next problem you need to look at is what expenses must be capitalized as organizational expenses and what expenses qualify as start up expenses. Organizational expenses have to have an election to amortize them for tax deduction purposes. Start up expenses can be deducted up to $5,000 and then the excess would be amortized. You need to meet the definition of start up in the code and regs before you can deduct these expenses.
There is a bill pending in congress that would allow the deduction of $20,000 of start up expenses that you may want to consider.
Good luck and spend a few dollars getting good advice from the beginning.

Comment on Ending Tax Breaks for Billionaires by 666bushisnazi666

666bushisnazi666 — Tue, 27 Jul 2010 02:02:22 +0000

@konopelli

That’s what the top rate was in the late 50’s. I bet the republitards on here that cry about President Obama rolling back the top rate to a measly 39% don’t even know that.

Comment on Ending Tax Breaks for Billionaires by stonescourt3

stonescourt3 — Sun, 25 Jul 2010 13:05:25 +0000

@searcherboy i agree. i didnt make that statement about the wealthy–SAGEBOT500 did.

Comment on Ending Tax Breaks for Billionaires by stonescourt3

stonescourt3 — Sun, 25 Jul 2010 13:03:50 +0000

@Pellegrino80 dont forget to add obama

Comment on Ending Tax Breaks for Billionaires by searcherboy

searcherboy — Sat, 24 Jul 2010 21:50:35 +0000

@stonescourt3 You’re absolutely wrong. A wealthy person with a multi-million dollar income, for all he buys, doesn’t spend as much on food, clothing, cars and housing for himself and his family as the 50 or 100 working people lower down the economic pole who collectively earn as much as he does. The wealthiest people buy nice lifestyles for themselves, and hoard the rest of their money in investments with a relatively low economic spinoff effect.

Comment on Tax deductions for using personal car for business? by Judy

Judy — Fri, 23 Jul 2010 04:47:17 +0000

You will still need to keep detailed records of your mileage, split between business miles, personal miles, and commuting miles. You have a choice whether to claim the flat mileage rate, 50.5 cents per mile for 2008, or actual car expenses, but in either case can only deduct the portion that’s for business miles. Whatever that comes to, you’ll then subtract the total reimbursement, and only deduct the rest.

As an employee, you’ll use a form 2106 to show the deduction, and can only deduct the amount that’s over 2% of your adjusted gross, and then only if you itemize.

Comment on Tax deductions for using personal car for business? by Ryan M

Ryan M — Fri, 23 Jul 2010 04:47:17 +0000

The IRS approved rate is .505 per mile. You can claim this rate LESS what you receive from your employer for miles driven or .155 as an reimbursed business expense. Keep a daily log of all miles driven and all reimbursements received by your employer.

Comment on Can I receive tax deductions for contributing to a charity if I am claimed as a dependent? by Judy

Judy — Thu, 22 Jul 2010 23:44:04 +0000

You can itemize and be a dependent, but to itemize you’d need more deductions than your standard deduction of $5450, which is probably unlikely. You only get a tax benefit from itemized deductions that are more than your std deduction.

If YOU made the contributions, your parents can’t deduct them.