Hello -

I started an internet venture this year and have currently earned 0 on the business. I’m expecting to start earning revenues near the end of this year. My questions are as follows:

1. I am actively engaging clients and meet with potential customers on a regular basis; if I am to buy a SUV for my business, can I write this off under section 179 (please keep in mind that my business hasn’t earned any income yet, and may not until 2010)? If so, how much can I write off?

2. If my business hasn’t earned any income yet, but I purchase the SUV for business use only (I have another vehicle that I use as my daily driver/for non-client facing meetings). How do I apply Section 179 to my taxes?

3. On my other job, I earn about 75k per year. Since I have a sole proprietorship, can I apply the section 179 deduction towards this income that I earned – even though it came from a different source? (e.g. would I be able to take the ,000 deduction from the section 179 for a vehicle and then apply it to my 75k, thus bringing my taxable income down to 50k?)

Thanks in advance.

we had fun making a film this past year (2006) which we’re planning on selling in either the following year (2007) or the one after that (2008) depending on how things go. obviously we’re concerned about things slipping into hobby expense territory, but hypothetically if we do sell the film, we’ll obviously owe taxes on the profit and we’d want to use the expenses from the time we were making it to offset those taxes. do we file the losses this year against our regular income or can we "carry over" the deductions into the year we make profit? and what forms does all of this involve, assuming we’re working under a sole proprietorship?

Last year (2007) I did some freelance video work and earned enough that I had to file as a small business with Turbo Tax Small Business. This year I only had a full time salaried job and did not work any freelance. Do I have to keep filing my small business records and say I earned {content} for 2008? The small business is a sole proprietorship and I took some business deductions if that matters.

If an LLC is out, what is my best business strategy to self-direct an IRA? I’ve heard from many that just running the business as a sole proprietorship runs up red flags to the IRS and my deductions are limited. Hard to deduct home office, etc.