Reply by Sylvia_FL on 5/2/05 9:54pm
Msg #35450
Expenses are really common sense. Anything that is to do with the running of your business - paper, toner etc are expenses.
ALL income is taxable, only the notary fee potion is exempt for SE tax.
You are far better consulting a tax accountant, especially if this is your first year in business.
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Reply by Sheree_TX on 5/2/05 10:45pm
Msg #35464
A few suggestions from an independent tax preparer: 1. Here's a link for a free CD offered by the IRS: http://www.irs.gov/businesses/small/page/0,,id=7128,00.html. 2. Also, Office Max or any office supply store has workbooks for use in keeping track of business income and expenses. 3. IMPORTANT - Even though it's a pain, make SURE you keep track of your mileage - $.405/mile adds up very quickly - especially in this business! 4. Take the H&R Block classes when they start up usually in the fall - they are extremely valuable and the most basic class covers Sole Proprietorships quite well. Just some ideas. Hope this helps. Good luck! ~Sheree
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Reply by Victoria/FL on 5/3/05 3:23pm
Msg #35594
All income is taxable,
even if it comes from an illegal means (per the IRS).
Here are some expense that I have:
computer, printer, fax, internet access, cell phone, long distance charges, office supplies (paper, toner, pens, staples, binder clips, high-lighters, notebooks, post-its, etc.), registration fees for directories, business license, tolls, etc.
When in doubt, write it down. Keep receipts on everything. Then discuss with your tax preparer. I'm actually meeting with my CPA tomorrow to discuss the same so I don't miss anything.
I keep a spread sheet of where I went, what the mileage was, who I paid and how much. And mileage deductions do add up quickly!
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