Tag Archives: Start-Up

Top Seven Tips for Taxpayers Starting a New Business

Courtesy of the Internal Revenue Service Anyone starting a new business this summer should be aware of their federal tax responsibilities. Here are the top seven things the IRS wants you to know if you plan on opening a new business this year. 1. First, you must decide what type of business entity you are […]

New Business – Deductions

Today TaxMama hears from Peg in New Mexico, who tells us, “I am into my small business online for approximately $12,000 (began in Mar ‘07) and have no income from it as yet. Am I able to deduct my business expenses from my total income to arrive at a total adjusted income? I am lost […]

No Documentation

Today TaxMama hears from Plucky in the Tax Parlor, who tells us. “I started a business in 2006 and incurred costs exceeding $5,000. I do not have the appropriate documentation for all costs. Can I still deduct the “standard” $5,000 deduction? ” Hi April, First of all start up costs are essentially the costs you […]

Business Standard Deduction

Today TaxMama hears from Marty in Wisconsin who is upset with her tax pro, “Is there a standard deduction of $,5000.00 for the first year that you open a small business? I was told there was and know someone who used it. My accountant will not redo my taxes or tell me if this deduction […]

Child Care Business

Today TaxMama hears from Beverly in AK, who tells us, “I’m starting a daycare center and was wondering which of the items I purchase that can be deducted?”

Start Up Costs

Today TaxMama hears from Doug, an Enrolled Agent in Northridge, CA who insists that, “The special $5,000 deduction for start-up costs spent by businesses after 10/22/2004 only applies to companies who’ve already started doing business. They can’t take the deduction the year before the business opens their doors.” TaxMama disagreed with Doug, so, it was […]