Question about deducting business expenses on taxes and standard deduction?
i don't know much about filing taxes and i travel quite a bit for work. i plan on claiming all mileage and hotel expenses on taxes but i wanted to clarify something because i don't understand how the "standard deduction" works. from what i understand you can claim standard deduction of $6350 or i can itemize all expenses. so if i add up all business expenses and its less than $6350 would i itemize? when do you claim standard deduction?
What tax deductions can I take for my software business?
Common BUSINESS EXPENSES
What can I write off on my taxes for my business expense?
I knew a dancer that even wrote off his "extension surgery".
Can I write off my condo fee as a business expense if I use 1 room in my condo as an office?
yes, you can provided the area (room) is solely for business purposes. So depending on the type of work you do in your Condo (LOS ANGELES GREATER AREA. ABOUT 20 MILLION PEOPLE IN SIZE) is building many loft Condo with just that intention, the upper area for living and the lower area for business).Most cities required a business license, but the catch-22 is you must obtain aN Occupancy permit to show the city what is the use for. (i.e. garage for repairing cars…probably not permitted. But, a computer based business…fine. A business that would require clients to come to you…maybe, depending on parking.How to determine the amount (%) of use towards the area used. This is exactly, SIZE MATTERS. TAKE A PERCENTAGE OF THE TOTAL area used over the total area. (DON’T FORGET TO INCLUDE RESTROOM IF YOU HAVE MORE THAN ONE, AND MAYBE $$ HOUSEKEEPER THAT CLEANS ONCE A WEEK (1099 IF YOU PAID HER MORE THAN $600 PER YEAR, AND THAT WOULD BE ONLY FOR THE WORK SPACE CLEANED..NOT THE ENTIRE HOUSE! Prorate all utilities based on the above formula.Per IRS regulations, if it isn’t permitted by local authorities, than it not deductible. But I have never run into an AUDIT (verify) that a place was legal.OR, take the safe harbor (a place that soso, but safe) and use a flat area used over total area in square ft, but not to exceed $1500.00 per year. One last things is don’t forget the 2 years losses out of any 5 years (rule of thumb) rules.Semper fi,THJ
Stripper Tax Deductions?
I'm really confused, I've been reading forums and dancers themselves said they can deduct: Tanning Manicures/Pedicures Waxing Costumes (some cases just all clothing) Lingerie Shoes Perfume Hair Styling Makeup Pretty much just things that make them more attractive. But one dancer said that it's no longer allowed? They also said it depends on where you get your taxes done. So what can they deduct exactly?
Can I write off as a business expense my LIFETIME FITNESS expense?
Fitness plans are not tax deductible nor are they legitimate business expenses. IF it hypothetical were deductible, you would have to amortize the membership cost over your lifetime and could not deduct it in a single year.
Is the purchase of commercial real estate a tax deductible business expense?
The purchase of commercial real estate is, what the IRS calls, a capital expenditure. Unlike standard expenses, such as office supplies and wages, capital expenditures represent purchases of assets that generally last longer than 1 year. Because the life of these assets stretch over a longer period, the IRS says that they must be deducted over a longer period. You’ve likely heard the term “Depreciation” before. Depreciation is how a business owner deducts the cost of capital expenditures. Instead of receiving the full benefit for the purchase in a single year, the benefit is stretched over a pre-defined life of the asset. For commercial real estate, the IRS says that life is 39 years.However, it is important to note that only the structures built on a piece of land are depreciable. Land itself is assumed to have an indefinite useful life. Accordingly, the acquisition price attributable to the land is not depreciable/expendable. The owner will receive benefit for the price of the land only when he/she sells the property.As a business owner, the tax landscape can feel daunting to try and navigate. But there are resources to guide you. For more information on what the IRS says about business versus capital expenses start here.And for tools and resources to better understand the tax landscape and how it applies to your business visit Financial Telepathy.