Category Archives: Business Expenses

Deducting My Labor

Today TaxMama® hears from Kevin with an idea others have had. “Recently our investment property is actually turning into a little bit of income property. If I hire out a job to be done, I usually write off the expense, including labor. If I do the work myself, is there any way that I can […]

Studying the Competition

Today TaxMama® hears from LiveMusic, with this interesting question. “I have expenses related to “studying the competition” so as to (hopefully) improve my own business profits. How would I categorize that?” 

Medicare Premiums and SE HI Deduction

In a Chief Counsel Memorandum (CCM) dated May 1, 2012, released July 13, 2012, IRS addressed the issue of Medicare premiums and the self-employment health insurance deduction.     For years IRS has stated in its publications that Medicare premiums do not qualify for the self-employed health insurance deduction. In early 2011 IRS stated in its […]

VCSP – Voluntary Classification Settlement Program for Employers – Replay

Clarification of the Voluntary Classification Settlement Program for Employers (VCSP). The discussion is based on the information in this Report. Agenda – July 16, 2012 What is the VCSP? What is the deadline? Which employers qualify? What benefits do you get? What are the penalties if you don’t participate, but you get caught? What are […]

eBay Sales for Friends

Today TaxMama® hears from Judecat in the TaxQuips Forum who is helping a sick friend. Without going into detail – “Judecat is selling his personal treasures on eBay because he is too ill and doesn’t have access to the Internet. She wants to know the tax implications.”

Mileage and LLC

Today TaxMama® hears from Randal in the TaxQuips Forum with a sensible question. “I am an outside salesperson working as a sole proprietor, getting 1099s each year. My largest deduction is mileage. I earn less than $30k most years. If I setup an LLC to run my business through, will I lose my mileage deduction?”

In Business Yet?

Today TaxMama® hears from sh1207 in the TaxQuips Forum with this question. “In 2011, my wife started a home-run Montessori school in October. We spent about $2,000 in setting up the Montessori (supplies, furniture, license, etc.). We only got $600 in income from one child, who was with us for 3 hrs a day starting […]

Delivering Newspapers

Today TaxMama® hears from Trina in the Tax Quips Forum who wasn’t an employee. “I started working for a newspaper company over the summer of 2011, delivering papers to homes using my own vehicle. The company did give me company checks, but they did not take any taxes out. I believe they called their employees […]