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Need information on Taxes

by Neil S
9 replies
Do any fellow Warriors have recommendations of books or other literature regarding taxes for self employers? This is new territory for me and am still confused about what is deductible. Thanks for your help!
#information #taxes
  • Profile picture of the author Neil S
    Maybe I should be more specific. I was looking for information regarding what is deductible for the internet entrepreneur. I understand that almost all business related expenses are deductible but I want to be sure to know where to draw the line. Any tax information regarding internet entrepreneurs would be very helpful.
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  • Profile picture of the author mbacak
    You might want to check out Drew Miles. He's my tax attorney.

    He saves me thousands every year.

    His main site is pfbs.com
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    • Profile picture of the author Neil S
      Thanks Matt, I will check that out.
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  • Profile picture of the author Scot Standke
    Hi Neil,

    I highly recommend Eva Rosenberg, she has saved me literally tens of thousands of dollars.

    http://taxmama.com

    Scot
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    • Profile picture of the author timpears
      Don't make more of this than there is to it. It is pretty simple really. You are asking about business deductions, forget about the internet part, that is just what type of business you are working in. There isn't any list that says internet businesses can deduct this and brick and mortar businesses can deduct that. You simply look at every item and ask, was that spent to further my business needs.

      If you are doing this from a home office, then the home expense is a deduction based on the area that is used for the business, exclusively. If you are using your internet connection for personal use as well as business use then only part of the cost is deductible. And don't forget, the IRS will attach a meter to check the amount of personal and business use to make sure that number is correct. :p:p:p


      I am not telling you that you don't need a professional, but don't make it more complicated than it is. If you don't have the basics down, then their time will be spent to explain to you those things and don't forget, they get paid by the hour. Take every damn expense you can think of and push the limit. They will tell you if you are going over the line and toss it out. But unless you like paying taxes, you try for everything you can and see what they will not go for.
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      Tim Pears

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      • Profile picture of the author Neil S
        Originally Posted by timpears View Post

        Don't make more of this than there is to it. It is pretty simple really. You are asking about business deductions, forget about the internet part, that is just what type of business you are working in. There isn't any list that says internet businesses can deduct this and brick and mortar businesses can deduct that. You simply look at every item and ask, was that spent to further my business needs.

        If you are doing this from a home office, then the home expense is a deduction based on the area that is used for the business, exclusively. If you are using your internet connection for personal use as well as business use then only part of the cost is deductible. And don't forget, the IRS will attach a meter to check the amount of personal and business use to make sure that number is correct. :p:p:p


        I am not telling you that you don't need a professional, but don't make it more complicated than it is. If you don't have the basics down, then their time will be spent to explain to you those things and don't forget, they get paid by the hour. Take every damn expense you can think of and push the limit. They will tell you if you are going over the line and toss it out. But unless you like paying taxes, you try for everything you can and see what they will not go for.
        Thats true I did not even think of that. I could deduct part of my internet and rent payment because technically they are used for my home business.
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        • Profile picture of the author timpears
          If you rent it is perfect as you can deduct a percentage of the rent. If you own your own home it is a little different as you have then converted your home to commercial property and when you sell it the same percentage is treated as an investment property and thus eliminated from the homeowner deduction of $250K per person not more than every other year. But we are getting a little over my head, and as they say, consult your CPA.

          The things I have shared are simply that of a person who has read the rules and please don't take this as professional advice as I am not a professional by any means. I rather regard taxes as a game. And he who knows the rules best usually knows how to take advantage of them to their own needs. But if you don't have a professional go over it to make sure you didn't go too far, then you open yourself up to the problems that can happen. Penalties and interest. But as most of us believe that penalties can be waived if you acted in good conscience and can convince the examiner, and interest is low so it is your cost of using the money until you get notified by the IRS. And if they don't let you know in three tax years then you are home free.
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          Tim Pears

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  • Profile picture of the author askloz
    Yeah, don't pay any.

    Or, put your money in your offshore bank account, take out what you need, declare that as earnings and right it off as business essentials, then you're sorted. No tax to pay.
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