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).

So… last minute taxes, coz I’ve been putting it off for fear of the headache I’d get (and am getting).

I’m self-employed, and went through and deducted all business expenses (rent for home office space, computer stuff, stationary, supplies, etc, etc…). I also deducted my insurance premiums as a business expense, but then did other medical expenses as personal expenses.

However, not having many personal deductions, my medical expenses don’t seem to be enough to take any deduction, and being rather poor (oh woe is me) I’d prefer deducting medical expenses as a business expense if I can… can I? And if so, where do I do that? I only see a section for insurance… not misc. medical expenses.

Thankyou so much!!!
Nothing’s paid with credit card… all debit/bank card, and I have the bank records and receipts for everything. No interest. I don’t even have any credit cards.

My medical expenses exceed 7.5%, but it still won’t let me deduct them as those are pretty much the only personal expenses I have (most everything is business, as I work from home, so can deduct portions of utilities, rent, phone, internet, etc…) so I don’t have enough personal expenses total to get any deduction apparently (?).

I don’t make enough for them to bother auditing me… they’d be spending more to audit me than they’d get back (if they got anything back, as I have receipts for everything and they’re all legit).

Basically, all misc. medical expenses are through insurance (what insurance wouldn’t cover, etc…) which IS business, so…???

Ugh.

If anyone could further clarify I’d appreciate it (I realise I’m probably arguing a moot point, but hopefully someone can point that out?)! Thanks!!!
The verdict: taxes are way too confusing. Bah.

Thankyou to those who tried to help! I appreciate it.

I did a bit of sleuthing, and according to "Topic 502 – Medical and Dental Expenses" on the IRS’ website, I CAN deduct misc. medical expenses on " Form 1040, Schedule A". And I did… and it helped a lot. The info is here in case anyone needs it in the future: http://www.irs.gov/taxtopics/tc502.html

Cheers, and thankyou!

Off to the 24 hour post office to avoid the hoards tomorrow (ugh!)!
Kathykoul… thank you, but it’s already been clarified. I checked online (one of the links listed) and out of nervousness called the IRS after sending out my taxes (and was on hold for like an hour) and they verified that I can, in fact, take them as business expenses since I’m self-employed.

Pub 587 says you can deduct expenses for a separate free-standing structure if you use it exclusively and regularly for business. We’re looking at a 10×10 unit. Based on size, the structure does not require city permits and is not included in the overall property appraisal value. How would you calculate the depreciation expense and portion of utilities on the Worksheet to Figure the Deduction for Business Use of Your Home?

For example –
Home is 900 sq ft and Seperate structure office is 100 sq ft
Home original cost 300,000 (Land = 200K, Bldg = 100K)
Separate structure original cost = 10,000

Method A: Office space is 10% of total square footage. Total basis is 100K + 10K = 110K. Depreciation basis for structure is 10% or 11,000.

Method B: Original cost of separate structure used for depreciation basis 10,000

If using Method B, would you still use 10% square footage to determine indirect expenses like utilities? Can you include mortgage interest and property tax?

Starting a Semi-Pro Football Team that will be operated much like a small business. Due to the limitations of a non-profit tax exemption (would need to be in business for at least a brief period of time to be eligible) I need to know what type of expenses I can deduct from taxes.

1) League Fees: 00

2) Travel Fees: Unknown Rate, but will be a flat rate because it will be a charter bus going from our Home Field to the visiting home field. Expenses going TO the home field for the charter will not be included in the deductions

3) Office space for the hotline and computer use for generating communication between customers and the business. Also used to maintain the businesses’ website, keeping financial records, etc.

4) Field Rental. Paying the field rent for Home games. 00

5) Ticket Costs. Paying for the printing of Tickets used for sales. 0

6)Equipment. Equipment for each player costs about 0. 0×40 = 000

7) Jerseys and Uniforms. 0 each player, 100×40 =00

Players will sign a release of liability to the team with proof of thier own health insurance.
Also I didnt mean to ask if anybody needed help, I am the one needing help heh

I work at home, and I take the home office deduction. I have a separate room that is my regular office space used exclusively as an office, so that is not the question.

I’m just sure if these are particular items I would be able to deduct. I bought a back pillow from the chiropractor for my typing chair, and I need to buy an air filter for this horrible allergy season and an air conditioner for the home offfice. Are these expenses I can deduct since they will only be used in the home office? Do I need to depreciate them?

When depreciating, is there a minimum dollar amount? The back pillow was only 25 bucks. If I don’t depreciate it, what category would that be?

Thanks for any information!! I have looked up a lot of info on this but I’m just not sure about these items.
As I said, my home office is my regular place of business. I do everything from here on the computer. That’s it.

I think I read somewhere air conditioning is not applicable to Section 179. And I also don’t know how the air filter would figure into that or if it’s deductible.

I own a business and I use a portion of my home as office space. Utilities are tax-deductible, but the electric bill comes in my mother’s name. My Question is this: Am I able to deduct that expense if can provide proof that it was paid for by me and that it was for electricity at the address that the home office is located? I understand how to calculate how much the deduction amount would be for, but I just wanted to make sure I could.

Thanks!

2008 was my first year of working from home. Now that tax time has rolled around I am unclear on if I can deduct certain expenses from from my taxes.

My biggest question is how do I know if I qualify or not? I am an employee of a company and I constantly read about this following language:

"In addition, if you work as an employee you can claim this deduction only if the regular and exclusive business use of the home is for the convenience of your employer and the portion of the home is not rented by the employer."

What does this mean exactly? I understand the first part about the using your office space for only work related matters. I am unclear on the part about my employer and what that means.

Any help would be appreciated. I already understand what I can deduct if I qualify and how my office space must be used only for work related matters.

2008 was my first year of working from home. Now that tax time has rolled around I am unclear on if I can deduct certain expenses from from my taxes.

My biggest question is how do I know if I qualify or not? I am an employee of a company and I constantly read about this following language:

"In addition, if you work as an employee you can claim this deduction only if the regular and exclusive business use of the home is for the convenience of your employer and the portion of the home is not rented by the employer."

What does this mean exactly? I understand the first part about the using your office space for only work related matters. I am unclear on the part about my employer and what that means.

Any help would be appreciated. I already understand what I can deduct if I qualify and how my office space must be used only for work related matters.