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?

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.

I bought a home in November, ’07 and am renting out my old property that I lived in until November. The renter moved in Dec 1, but due to a promotional two month no-rent period, they didn’t start paying until February ’08. I also did about 00 worth of repairs on the old property in November to prepare for the renter moving in.

Specifically, I’m interested in:
* Mortgage interested. Where do I place each? Is the mortgage interest for the old property a personal or business expense or a primary residence since I lived there 11 months? Or is it prorated?
* Are property taxes on the old property personal or business expenses?
* Are the property taxes on the
I paid mortgage interest on both the old and new property that year business or personal expenses?
* Can I deduct the promotional cost (2 month free rent) as a business expense?
* Can I deduct the repairs as a business expense?
* Can I deduct the last 2 months of association fees and homeowners insurance as business expense?

Me and 3 brothers are equal partners in a LLC we formed mid 2007. We did not start doing any business until after January 1st, 2008. However, all of us incurred separate personal expenses in 2007 to get the LLC started. Can we deduct these expenses on our personal tax returns? or?