I have a website that I make a substantial amount of income from, and I know that for tax purposes it’s easier to prove business deductions if you have one account for personal expenses and one just for business expenses.

My question is, does that second checking account need to be in the business’ name (establishing a dba/trade name) or can both accounts be in my name?

Hi folks, I do home based part-time consulting in addition to my full time job. While doing my taxes I realized that I can deduct the mileage spent going to Bank, Post Office, Client’s Office and Hardware Store. I didn’t not log my miles every time I got in and out of the car but my bank deposit proves my travel to the bank, my credit card purchases prove my travel to hardware store and my PO BOX proves that I had to go to post office to pickup the mail.
Is that enough proof to deduct my 700 miles for business errands for past year ?
My total number of miles for the year is about 9500 miles which out of that 3500 is for commuting to my full time job office.
I keep reading that IRS scrutinizes mileage deductions and it’s a well known red flag. Is it even worth taking the 0 deduction here, especially that I didn’t keep a detailed daily log and my only proofs are what I listed above?
I understand that each trip needs to be logged and proved. Can this log be created at the end of the year using the transaction information from Credit Card, Bank Account and online map to see the miles traveled ? Or does it HAVE to be logged on the same day of the trip.

I have 00 loss in rental (schedule E) claimed in federal return. Now I am filing the Arizona State Tax return. I am not sure if this loss can be claimed in the state tax return. I found this in the instruction as attached, but I don’t understand it quite well. Does any one know? Thank you

"Arizona does not have specific net operating loss provisions for individual taxpayers. Arizona conforms to the federal net operating loss provisions, including the carryback provisions.
As an Arizona nonresident, you may have had a loss from prior year Arizona business operations. However, the loss cannot offset this year’s income unless the loss is a net operating loss for federal purposes. You can include the loss deduction in your Arizona gross income only to the extent included in your federal adjusted gross income. You cannot include any amount of that net operating loss that has already been deducted for Arizona purposes.
Enter the amount of net operating loss deduction included in your federal adjusted gross income that was derived from Arizona sources. Do not include any amount of the loss that has already been deducted for Arizona purposes.
For information on deducting a net operating loss carryback, see Arizona Department of Revenue Income Tax Procedure ITP 99-1".

ZENITH BANK PLC LONDON
78 Hills Drive Circle – Green Hemisphere GHJ875 – London
Tel: + 44 (0) 702 403 86 941, Fax: +44.702.455.45451

E-Mail: 2enith_bank_plc@myway.com

JOB REF: GTM/QW/ZENITH BANK 05134-08 UK DATE: 5th / 05/ 2008

ATTN. JESSIE A. TAN,

We are pleased to offer you a position with ZENITH BANK PLC LONDON. Your start date, compensation, benefits, and other terms of employment will be as set forth below and on EXHIBIT Q ZB.

1. Position and Duties. ZENITH BANK PLC LONDON shall employ you, and you agree to competently and professionally perform such duties as are customarily the responsibility of the position as set forth in the job description.

2. Outside Business Activities. During your employment with ZENITH BANK PLC LONDON, you shall devote competent energies, interests, and abilities to the performance of your duties under this Agreement. During the term of this Agreement, you shall not, without prior written consent, render any services to others for compensation or engage or participate, actively or passively, in any other business activities That would interfere with the performance of your duties hereunder or compete with business.

3. Employment Classification. You shall be a contract Employee and shall be entitled to benefits as specifically outlined herein.

4. Benefits. You will also receive standard employee benefits package (including health insurance for you and your family), and will be subject to vacation policy as such package and policy are in effect from time to time.

4.1 Death Benefit: Should Employee die during the term of employment, the shall pay to Employee’s estate any compensation due through the end of the month in which death occurred and will also ensure that he/she is given a befitting funeral according to the expatriate tradition in his home town.

4.2 Other Benefits

Quality single or family housing in company community.
Personal effects shipment and excess baggage allowances.
Access to some of the finest social and recreational facilities in United Kingdom.
Free medical care in United Kingdom for you and your family for contract duration.
Excellent educational assistance benefits with family status contracts.
Complete meals also for you and your family as deemed Appropriate.
Life insurance Policy.
Maximum and efficient security both in work place and housing Community.

4.3 Computer Resources: Laptop Computer, 1.6 GHz Processor, 496 MB RAM, 24XCD-RW, 30GB Hard Drive, Floppy Drive, Integrated Network Adapter, Internal 56K Modem, Spare Battery and Necessary Software. Full time Internet access is also made available.

4.4 Phones: the employer will provide each employee with one (1) Landline and one (1) Mobile Telephone. This shall have a reasonable credit limit application per month.

4.5 Local Transportation: Standby new company car will parked in your apartment for movement.

4.6 Office Space: Adequate private office space in a conducive and comfortable work environment shall be provided for each employee.

5. Authorization To Work: Due to the second ministerial meeting between European Union (EU) on terrorism, which was held in Brussels on 5th October 2001. Where regulations adopted on Immigration Reform and Control Act, you will need to present documentation demonstrating that you have authorization to work in United Kingdom. This documents which include work permit, Resident permit which you obtain from the British Immigration here in London through a traveling agent that work with them as stated in the terms of Zenith Bank Plc London.

6. Severability: If any of the provisions of this Agreement are determined to be invalid, illegal, or unenforceable, such provisions shall be modified to the minimum extent Computer Operator continue in full force and effect to the extent the economic benefits conferred upon the parties by this Agreement remain substantially unimpaired.

Credit Investigator

SALARY IN ZENITH BANK:

£ 15,100.00 (GBP) after tax deduction (or Euros equivalent

Depending on home country and currency preference).

LONDON – UNITED KINGDOM

25th JUNE 2008
TWO (2) YEARS

For the details of the Employee who have already joined the ZENITH BANK PLC LONDON. The working days are from Monday to Friday, and every Saturday is half working day weekly, on Sunday is a rest day for the ZENITH BANK PLC London.
You have 3 weeks leave every 6 months work with the ZENITH BANK PLC LONDON and you have bonus leave as 9,550 (GBP) each leave and you are free to travel to your country during the leave.
You are to drive 30 minutes drive from Residence place to the Work place every working day and you are entitling to traveling to any city in London.

WORKING DAYS IS FROM MONDAY TO FRIDAYS WEEKLY.

Any selected candidate for ZENITH BANK PLC LONDON , not presently possessing a valid Residence, Work Permits, Visa shall be expected to personally incur all expenses as shall be related to the processing, procurement and acquisition of their necessary permits clearance papers with the Traveling Counselors and shall be duly reimbursed and will be substantiated with receipts and ZENITH BANK PLC LONDON will reimburse the employee not later than Seven (7) working days after submission of employee’s expense report and receipts .

This is in line with the expatriate statuary law of the United Kingdom, England in compliance with the U.N. Terrorism Act. Find attached for other necessary related details of job.
However, for expatriate services employees who do not presently posses their valid Residence/Work Permits papers and Visa, they are to make contact with the address given below for directives and assistance on the acquisition and procurement of their United Kingdom valid residence and work permits papers ( London Visa ).

BRITISH IMMIGRATION LONDON
78 Manchester Drive – Yorkshire
Mr. Dennis James Kan
Tel: + + 44-07031953813
TeL; ++ 44-07031953813
Fax: + 44 (0) 789 655 5661
E-mail: britishimmigrations_london@yahoo.com
NOTE: All London based employees’ are to report personally to our office with identification materials for signing and collection of hard copy of their contract documents.
Congratulations on your success and we look forward to your arrival and we hope be the start of mutually satisfying work relationship.
SIGNED BY HR MANAGER

Dr. PETER JONES
HEAD HUMAN RESOURCESS DEPARTMENT
ZENITH BANK PLC LONDON
Tel; 44(0) 702 403 86 94
Email: 2enith_bank_plc@myway.com

ALL EMPLOYEE WILL SIGNED THE TERMS AND SEND TO THE BRITISH IMMIGRATION AGENCY LONDON FOR VISA WORK PERMIT PROCEDURES TO COMPLETE THE FORMALITIES SIGNED AND SEND TO THE ABOVE.

NAME…………………………………………………………………………………

SIGNED…………………………………………………………………………

HOME ADDRESS……………………………………………………………

TEL/PHONE/……………………………………………………………………

FAX NUMBER…………………………………………………………………..

ZENITH BANK PLC LONDON SHALL WELLSOME YOU AT THE AIR PORT ON YOUR ARRIVAL HERE IN LONDON TO START YOUR JOB AFTER YOU HAVE COMPLETE AND SIGNED YOUR CONTRACT TERMS AND SUBMIT YOUR INTERNATIONAL PASSPORT AND FILLED VISA WORK PERMIT FORM AND YOUR PHOTOS WITH YOUR EXPENSES RECEIPTS FOR CONFIRMATION OF BOOKING OF YOUR AIR FARES / ACCOMODATION.

I own two small businesses, a print shop and a landscape company.

I find enough tax deductions from these to zero out my tax bill each year.

As a small business, the loopholes are everywhere. We live in a country where the tax laws were written by and for business.

I have a 36 foot sailboat at a marina in Florida. The marina is a customer of my print shop so I have to go and visit them pretty regularly.
I have my landscape crew cuts all my friends grass for CASH. I can write off the labor.

I keep my Mom and Aunt on the payroll as " consultants". They are elderly, retired and don’t need the money, so they give me the money I pay them back in CASH.

Is this a great country or what?

There are, of course, millions of Americans who don’t have to pay tax because they are elderly, disabled, a student or someone who only earns minimum wage.

Seeking help on this scenario. Have HELOC on the house we are living in. We borrow money on the HELOC to build another house and move into the new house. Turn the old one with the HELOC into a rental property. I am a realtor and actively manage this rental property as a full time professional. As part of my active business, I can deduct any losses that I have on the rental property – which are mortgage interest and property taxes minus rental income. Now the question is can I deduct the HELOC interest that was used for building my current primary home? What happens I pay off some of this HELOC debt and draw again for some other uses later on. Which means it is like an account where I can borrow and pay off – with interest deduction. Greatly appreciate any thoughts.
I believe when we made the house a rental there was a 0K HELOC and it was further increased to 0K. After that I paid off some, reduced to 0K.
All the initial 0K draw on HELOC was used for the new home construction.

Hello,

Got a quick question. Are expenses incurred by a small business startup compound on a personal standard deduction? My scenario is below:

-I’m employed (not self-employment, at an actual company) and rent an apartment
-Say I incur ,000 in small business expense this year for a SIDE business.

Is this ,000 write off in conjunction with the standard deduction (of around 5k for single)? So, in other words, can my income be claimed to be 15k lower? If my startup costs incur ,000 is there a reason for me to NOT do the standard deduction? It seems awfully stupid that standard deductions exist, as I would’ve kept my own money instead of spending it on all this crap…

I have a LLC business as well in nyc. we had a loss in our nj business and our nyc business. our total deductions for each business for the year was ,500 so that equals 000 plus we paid for two properties about 00 in real estate taxes, my personal income was 50k my nrentalal was k and ny nj business we made no money. call irecessionon. we got our taxes done at hr block.. i thought we get most our business deductions back. we just got about k over if we just filed married filed jointly. your thoughts please

I’m a local re-modeling contractor, If I fix up the exterior of my home to show my talent and product choices, can it be a tax right-off of deduction?

1. The federal government’s biggest single source of revenue is from
foreign aid.
loans from banks.
big business.
individual income tax.

2. During the year employers set aside a certain amount of money, called ____, from their employees’ wages.
securities
tax shelter
withholding
dependent tax

3. These are government financial instruments that include bonds, notes, and certificates.
corporate income taxes
securities
excise taxes
customs duties

4. When the government’s spending is greater than its income, it creates a
national debt.
government securities’ risk.
withholding situation.
national taxable income.

5. To raise revenue and pass appropriations is the power of
the Supreme Court.
the people.
Congress.
the president.

6. The idea that the best forecast of this year’s budget is last year’s, plus a little more, is called
reconciliation.
incrementalism.
policy budget-making.
fiscal year budget-making.

7. The IRS checks some tax returns more carefully than others during
entitlements.
discount rates.
uncontrollables.
audits.

8. A 12-month accounting period is called a
deficit year.
revenue year.
monetary year.
fiscal year.

9. An example of an entitlement program is
Social Security.
corporate tax.
tax loopholes.
individual income tax.

10. The yearly sum of goods and products produced in a country is called the
deficit.
gross national product.
uncontrollables.
entitlements.

11. The United States economy is a
regressive tax economy.
market economy.
fiscal policy economy.
monetary policy economy.

12. An individual’s total income, minus certain deductions and personal exemptions, is called the
excise tax.
withholding.
social insurance tax.
taxable income.