I own two rental properties & want to form an LLC. Is this enough homes to do this? They’re not worth but about 50k each. Is the IRS extremely picky when it comes to deducting part of your home to "manage" your business (in this case, an LLC)? I have a friend that works in sales, like me, and this friend does it every year (although, from a moral perspective, I think it’s wrong… they have a lot of personal belongings in their "office.") Any help is appreciated.

By what percentage will forming an LLC reduce my tax rate?

I know nothing about taxes, as my wife is an accountant (she thinks the idea of setting an area of our house as "office space" is a red flag to IRS).

A good friend of mine owns a Jani-King cleaning franchise and my wife has been employed by him for a couple of years. Starting last year my wife started doing it full-time. I have a couple of questions…

1. We have received about ,000.00 in income during 2007 and have not paid any taxes on that income. What kind of percentage of that income can we expect to pay?

2. Her boss provides all of the supplies, however we use one of our personal vehicle to go from job site to job site. I know she drives approximately 250 miles each week. Can we deduct the mileage as business expense as long as we know what the daily amount is (we have kept track).

3. Should I look at any other deductions?

I know there will be people that will say that we need to speak to an accountant, and we intend to. I am just looking for a little education before we meet with one.

Any assistance is greatly appreciated.
I should have clarified the section about my income. I work for an employer (city government) and our total household income was about 53K including the 12K we made as a contractor.

my husband has been working for his mothers cleaning business for over two years..it was an under the table type of thing..he has asked her several times to make him a legal employee due to things such as our credit, buying a house, etc. so finally we asked her again..we now of course, she decides she wants him to sign a subcontractors agreement…
why do we feel screwed all of a sudden? i’m not an idiot, i get what she is doing here..so basically this means, she pays him and its a deduction for her when tax time comes around…and he has to pay his own taxes? am i right on this, or totally off base? is this something we should involve our lawyer in or an accountant?

i know its her business but we have been asking her about him being her employee since the beginning and all of a sudden it seems like she ways to cut corners.. an unbiased opinion would be nice anything is better than nothing..i have to talk to her tomorrow about it and i need some back up..thank you..

I am 50%owner of a company and have a partner that makes up the other 50%. We are an LLC Partnership. We have an accountant that is handling all of our tax info, but i had some questions of my own. Hopefully i can get a better understanding as to how this all works.

1. We each take an equal draw every week from our Business account, is that considered our individual income for the year?

2. We are a DJ company, so would we still have individual deductions such as gas for our vehicles that we use to get to our gigs, cell phones etc, all things that we didn’t purchase through our company?

if someone could please help me better understand how this all works i would greatly appreciate it.

I am starting an online retail business and have bought market research tools and website building software. Also I just got a dba. My site is not yet published on the net.
Couple of questions…
what can i deduct as start up deductions?
Did getting a dba officially "start" my business?
What sort of time restrictions go along with start up tax? ( i bought the software listed above in 07 and got the dba in 08)
what sort of reciepts should I be saving?

I know …I need an accountant but am strapped for cash at the moment. . ,. PLEASE HELP!!! Quality info is needed! thanks!!!

How should I file my 2009 taxes in order to have the greatest chance of being approved for a home loan? I have been self-employed since 2004 but I was also employed full-time for another company until 10/07. My 2004-2005 taxes were filed under an LLC S-Corp. 2006 taxes under sole-proprietorship and W2 for my full-time employer. 2007 & 2008 I used Turbo Tax Home & Business as a sole proprietor. I’m going to a reputable accountant, tax consultant, and mortgage broker next week for more advice but would like to prepare myself with any other questions before doing so. My business has made a profit since I started it in 2007 but as many business owners do, I’ve had enough deductions to show very little profit. I’m concerned the banks won’t like this. I can show a great profit for 2009 if I need to in order to get a loan as my company really does make a good profit. I hope this makes sense. Does anyone have any answers that might help. I currently do my taxes myself but will a lender want a professional office to have completed my taxes? Thanks

My family and I have used the same accountant for about 4 years for taxes. She does it at home. You dropped your taxes off and call her to find out when the money will be in your account. You would usually have to harass her to find out when and how much you were getting electronically. well my family received a paper audit. When we looked at the printed forms, she put a lot of money for health, and business deductions. unbeknown to us. She never asked if it was alright. What can be done if anything in regards to paying back what is owed. Can she fix it?

can you claim a tax deduction as you’ll have to provide food for her? I think this could be a good investment as you can pay for her business classes so she can be an accountant and help your business at lower wage and you could also invest in a second one for cookery. Is it legal somewhere? Also, what if she doesn’t like you and runs away?

My husband and I bought a rental property in September. Since we are new at this I am not completely sure what all is tax deductible. Our taxes will be done at HR Block. I am just curious for my own questioning. We have not had much expense in those months. We did spend money for paint, varnish, painting supplies, fire alarms, fire extinguishers, etc. our first month. After that it was mostly paying bills and the building payment. Also, when I tracked my mileage I tracked miles per trip I then used a trip calculator to figure the price I would pay for gas at the cost of gas that day for the specific amount of miles including my gas mileage. I read somewhere recently that it could only be deducted if you use a standard deduction is that true? Also, when we bought the building we were told to call the IRS and get a tax ID number so we did. Now when I spoke to my usual accountant at HR Block hes saying we file this with our personal taxes. Did we not need the tax number? Do we really claim it with our personal? I am a little baffled by this. I was always under the assumption business was filed seperate. Any info would be greatly appreciated.
also, we bought new appliances for the one unit. Is that deductible? I believe they are energy star.
also, I was married on july 17, 2008. what would my status be for my taxes?

My accountant and I are at odds about this issue. The story is that my wife and I, who run a general partnership cleaning business, purchased a minivan in June of ‘09 exclusively for business use. The purchase price was 00 and we paid for it outright. Then in December, we sold the van for a large loss (we only got 00 for it) due to it having serious mechanical issues. So basically we took a loss of 00.

My accountant claims you can either deduct a.) expenses of the vehicle such as gas, maintenance, and depreciation or b.) mileage – but you can’t deduct both. He also says that if I deduct the mileage, I can’t deduct any of the actual purchase price of the vehicle. And if I go the expense route, I can only deduct depreciation (which would probably be around 20% of the vehicle cost). My take on it, (and what I’ve heard from another accountant who I wanted to go with but was booked already for this tax season), is that you can deduct the purchase price of the vehicle, and report the 00 that we sold it for as income, using the section 179 deduction. Then AT THAT POINT you either choose to go the expenses route (minus any depreciation of course) OR the mileage route when making deductions for while the vehicle was in service.

I know what he’s getting at with the expenses vs. mileage route as that’s usually true, but I think he’s wrong in his thinking in our case and I’m trying to get either confirmation of his stance or mine. I posted on another board also but people weren’t sure. If anyone can give me an answer either way and knows for sure what they’re talking about, your input is greatly appreciated on this!!