So, my standard deduction is higher than my itemized deductions.

I have a sole proprietorship, however, and I HAVE to itemize because of it.

My sole proprietorship is a very small internet business, it’s not really income, it’s a hobby, but was told to claim it to not get in trouble with the big boys.

I was wondering if, when I do my taxes, I would be taxed on more of my income because my standard deduction is higher than my itemized?

I am contemplating shutting down my sole proprietorship and joining another company as a W2 employee.

Having my own business affords me some benefit in the form of deductions/expenses (i.e. I deduct a portion of our mortgage for home office, one of our cars, gas, insurance etc.)

In closing up shop and joining another company, is there a way that I can continue to take some of these deductions (a portion of mortgage, phone bill etc.)? Or does the fact that I no longer have my own formal company preclude me from such deductions when I file my income taxes?

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

The owner of the company, is single and has no dependents. He uses the ,350 standard deduction in computing taxable income for 2007. The personal exemption amount for 2007 is ,400. This is his only source of income. Compute after-tax income if:

a. the company is a sole proprietorship, and the owner withdraws ,000 for living expenses during the year.

b. the company is a corporation, the owner is the sole shareholder, and the corporation pays out all of its after-tax income as a dividend to the owner.

c. the company is a corporation, the owner is the sole shareholder, and the corporation pays the owner a salary of ,950. This will increase the corporation’s business expenses to 9,950.

If I own a business that loses ,000 on paper……and I have another regular job that pays ,000/year….can I deduct the ,000 business loss form my ,000 job income? In other words, can I claim k in taxableincome, les my regular deductions (mortgage interest, local taxes, etc.)?

Is the answer the same if the business is an LLC vs. a sole proprietorship?

i started a sole proprietorship (online business) and hired a web developer to make my website. can i include these costs in the ,000 deduction limit that the IRS allows for startup costs?

I need to file the paper work for an LLC/sole proprietorship.
I need to file the paper work to declare the money I made (25) and I have about 2200 in deductions.

I also need to figure out something on my personal taxes:
I also have a letter from the IRS about a W2- I got on April 15th after I sent im my efile already. I never filed an amended return so they are counting the 8.xx of federal taxes not paid as income for this year.

Those are the issues I got. I know that my revenue is for now pretty low so I don’t have to worry about an instant IRS audit, but I don’t want to ever get one so I want to have someone file this right the first time, and I’m pretty sure that I’m not that person.

Basically, the issue is whether I should file this as personal income, or file as a business. Either way I file I dont know the forms to fill out and if I did them myself the danger is that I dont know enough to catch my own errors. Which is why I need someone to do em for me.

If I work for a corporation but have a side job (sole proprietorship) will I pay Self Employment Tax on just the sole proprietorship income? Thanks. Any suggestions as it comes to Self Employment tax (if I claim enough deductions can I get that down to a normal taxation)? Thanks a bunch!

I have a Sole Proprietorship currently and have been urged to change it to a C Corp. I was told that the tax deductions would be better. I’ve been in business for 5 years and am starting to make a profit. Which is good for my pocketbook, but isn’t so good for my tax liability. I also have a full time job where my employer provides insurance for myself and my family. If I Incorporate I would quit my full time job and work as a subcontractor thus making myself responsible for everything. I would also then have to have a partner/employee. I am eager to grow my business and am concerned if this is the correct next step. Any advice will be accepted.

I just opened a small business in May (yea!) as a sole-proprietorship. I’ve spent a ton on business related items to get me started. The only thing I’ve done with taxes is file my sales tax returns…otherwise I am CLUELESS when it comes to taxes, deductions the whole bit. Would you suggest going to an accountant for this first time around or getting a program like tax pro? I’m a resident of NH but temporarily living CA (where I pay my sales tax to)–do the computer programs account for those sort of "weird" circumstances?