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  #21  
Old 12-31-2013, 10:28 PM
Roger Roger is offline
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Sorry to confuse the matter. When somebody says it isn't hard, but then says they have done it for weeks, that tells us that the task is taking a long time (read: hard to do). It surely sounded contradictory to me.
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  #22  
Old 01-01-2014, 06:58 PM
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TPendagast TPendagast is offline
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Originally Posted by gulfjoe View Post
Any tips for a first year solo part time guy when it comes to taxes this year.
1st year solo? Depending on variables (like how much equipment/assets you bought and how much you invested to go into business) you will likely no owe any taxes, as most start up business don't show a true profit in years 1-3. they are mostly paying themselves back for the start up costs.

IT is worth the extra cash to get a CPA to look over ALL your records and fill out your taxes for you... like i said depending on variables, you will likely not owe taxes the first several years (unless you got some really healthy revenue! ine which case what's a little bit o tax?)
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  #23  
Old 01-01-2014, 07:00 PM
whiffyspark whiffyspark is online now
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10 years ago before turbo tax and hr was popular I could agree with you. But now there is no real reason for a solo person to have a CPA. Its not rocket science. What you buy for your business you can write off. I do not do the home office write off. That is generally a red flag for the IRS
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  #24  
Old 01-01-2014, 08:11 PM
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gulfjoe gulfjoe is offline
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Originally Posted by whiffyspark View Post
10 years ago before turbo tax and hr was popular I could agree with you. But now there is no real reason for a solo person to have a CPA. Its not rocket science. What you buy for your business you can write off. I do not do the home office write off. That is generally a red flag for the IRS
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Here's my next question, I financed a lawn mower, it's not paid off yet, can I still write that off.
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  #25  
Old 01-01-2014, 08:14 PM
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TPendagast TPendagast is offline
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Originally Posted by gulfjoe View Post
Here's my next question, I financed a lawn mower, it's not paid off yet, can I still write that off.
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You can write off the payments

The CPA doesn't cost much to prepare taxes
He will often save you more than the cost difference between him and turbo tax... So it's like making money to hire him
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  #26  
Old 01-02-2014, 11:54 PM
britsteroni britsteroni is offline
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Quote:
Originally Posted by whiffyspark View Post
10 years ago before turbo tax and hr was popular I could agree with you. But now there is no real reason for a solo person to have a CPA. Its not rocket science. What you buy for your business you can write off. I do not do the home office write off. That is generally a red flag for the IRS
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A red flag to the IRS? Why would anyone care about red flags if it is a legit deduction?

Anyone who thinks TurboTax is acceptable for a business owner looking to maximize deductions while trying to keep as much cash in your pocket (read not just buying equipment for the tax write off) really doesn't understand the game and how to play it.

Not trying to be offensive, but you are giving the OP terrible advice while showing your ignorance (home office deduction).
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  #27  
Old 01-02-2014, 11:56 PM
whiffyspark whiffyspark is online now
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Originally Posted by britsteroni View Post
A red flag to the IRS? Why would anyone care about red flags if it is a legit deduction?

Anyone who thinks TurboTax is acceptable for a business owner looking to maximize deductions while trying to keep as much cash in your pocket (read not just buying equipment for the tax write off) really doesn't understand the game and how to play it.

Not trying to be offensive, but you are giving the OP terrible advice while showing your ignorance (home office deduction).
Research it. It is one of the most common deductions people mis use which in turn
Is a chance to be audited. Its not ignorance it's just simply not worth the chance of me being audited for the small write off it is worth
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  #28  
Old 01-03-2014, 12:02 AM
britsteroni britsteroni is offline
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Originally Posted by gulfjoe View Post
Here's my next question, I financed a lawn mower, it's not paid off yet, can I still write that off.
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Seriously, you should sit down with a qualified tax professional.

Yes, you can write off the entire purchase this year, but you will then be making payments in the year(s) to come without receiving any deductions for it.

Since this is your first year, I'm guessing you won't be showing much positive income from the lawn care gig, so it might make sense to stretch out the write off as you will be able to avoid self employment taxes on the portion you deduct in the future years.

Good luck!
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  #29  
Old 01-03-2014, 12:10 AM
britsteroni britsteroni is offline
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Originally Posted by whiffyspark View Post
Research it. It is one of the most common deductions people mis use which in turn
Is a chance to be audited. Its not ignorance it's just simply not worth the chance of me being audited for the small write off it is worth
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So you're willing to leave money on the table because you're scared of a potential audit? If that's the case, only include your income on your tax return because you don't want to be claiming any suspicious deductions.

I provide this advice as part of my living. I don't think I need to research anything frankly. You are paying more tax than you need to for no reason. Again, you are a classic example of why the advice you are giving is bad advice.

The home office deduction is legit and there is no reason you shouldn't set aside a portion of your house for exclusive business use if that is an option.
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  #30  
Old 01-03-2014, 12:21 AM
whiffyspark whiffyspark is online now
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Originally Posted by britsteroni View Post
So you're willing to leave money on the table because you're scared of a potential audit? If that's the case, only include your income on your tax return because you don't want to be claiming any suspicious deductions.

I provide this advice as part of my living. I don't think I need to research anything frankly. You are paying more tax than you need to for no reason. Again, you are a classic example of why the advice you are giving is bad advice.

The home office deduction is legit and there is no reason you shouldn't set aside a portion of your house for exclusive business use if that is an option.
Guess I should have a talk with our advisor. Lol. Hes the one that told us that we shouldn't


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