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 […]
Category Archives: Business Expenses
Today TaxMama hears from Peter in Florida who wants to know, “I am self employed, a sole proprietor running a one person business. Are my income tax preparation costs personal expenses? Or may I record them as business expenses?”
Today TaxMama hears from Ken in the TaxParlor who says, “My wife is part of a Subchapter S corporation for a craft store. If the corporation does not declare a dividend can we still write off all of her business expenses on our tax return? How many years can we deduct expenses before the corporation […]
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?”
Today TaxMama hears from Patrick in TaxMama’s Tax Parlor, who says, “I have a question concerning frequent flyer miles. I have a friend (taxpayer) that is an employee of a consulting firm and had over 40,000 miles of air travel in the current year. His employer reimbursed all of the taxpayer’s transportation expenses, but allowed […]
Today TaxMama hears from Betsy in San Francisco, who wants an in-depth tax planning for free! “I’m planning to start an Internet business. I live in CA and will be working from my home. I want to create a NV LLC for the asset protection reasons you mentioned in Nevada LLC show. And, if the […]
Today TaxMama hears from Shirley in Florida, who has this problem. “In 2002 a boat I’ve owned since 1986 ran aground.I had used it as a business to run charters. My insurance paid me $10,000 to have it towed to dry dock repairs. The depreciated value at the time of the accident was $3,000. Extensive […]
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 […]
Today TaxMama hears from Jim in California who tells us. “I’m an affiliate marketer and have spent a lot more money on ebooks and courses than the amount of income I have generated. Are the ebooks/courses tax deductible? Under what category should I put these expenses?” Dear Jim, Making a fortune on the Internet looked […]
Today TaxMama hears from Tom in Durango, CO who wants to know, “If I pay a former employer money to let me out of a non-compete agreement can I deduct the amount from my taxes? If so, then on what form?”
Today TaxMama hears from Deneice in Petaluma, CA, who says. “I am the bookkeeper for an actor, who is (uh hem) getting older. He does commercials and the company he works with would like him to maintain as much of his ‘youthful’ image as possible. For him to do this, he has had some Botox […]
Today TaxMama hears from Bob in North Carolina who is envious, “I have a couple of friends with company cars that they drive everywhere – on business trips or family trips – both. The company pays all the costs for the vehicle (including gas)! One friend pays only $100 per month for this pleasure. Since […]