I want to be considered as a co-owner with my bf’s business. We have not filed any 1099′s but will suffer penalties if we must. I want to claim that I paid myself a salary of 27k which is just enough to cover my mortgage and car note. I am doing this so that I can claim the interest paid on my mortgage (in my name only) as well as a few other deductions such as medical. I also want to receive the stimulus rebate for me and my daughter. Is this tax fraud? What are potential problems? I DO in fact work with my husband on the business. We both make business decisions. We just never really formally "paid" me for my work.
Sorry. We are engaged and have been engaged for a year. And dating for 6. So I just started calling him hubby. for tax purposes, he is my bf.

Why is everyone saying I didn’t work? I DID work, I still DO work for the business. We are just trying to figure out the technicalities of the IRS. In fact, this business was started 3 years ago with a large chunk of my money as well. It just gets complicated because we never defined my position. I guess I am answering my own question. I know I worked for the business, so I guess I know it’s not fraud. But how do I prove that to the IRS? All my work is for nothing because we never filed a 1099? We can’t be the only business in the world that forgot to issue a 1099. What is it? Like a fine?

A friend and I are starting a business where we resell 100% soy candles by private labeling. We originally thought about working on the business from home but i heard that it may be more beneficial to work the business from some type of office for tax purposes.

I heard it was easier to claim deductions since there are some zoning restrictions for claiming a work at home business.

Our plan is to eventually expand our business (once revenue starts kicking) to a party favor, event planning type of business where our soy candles can be bought for such purposes.

I was told since my long term goal is to have a business in an office i should start off that way even if i plan to move the business to a different location once things pick up.

Can anyone shed some light on what i should do? Thanks in advance!
MODY BLUE – Thanks for your input. Well we wont be manufacturing the candles. They will be manufactured for us and we buy off them and resell it and the candles come closed so i dont think the scent would be too much of an issue.

I run a online business out of my home and I’m considering purchasing gift cards for use in purchasing goods for sale in my business. How do I document this for tax purposes? Basically, instead of purchasing goods for sale directly from my business bank account, I use the business debit card to buy gift cards, and then use the gift cards to purchase goods which I then sell for my business.

Another way to look at it is, can I buy gift cards and resell them as part of my business and how do I document that if the sales occur online without any shipments?
I’m aware of what I can claim as my cost and profit but how do I document the gift card expenses? What records do I keep? How do I document that I’ve actually sold a gift card and given the funds to a 3rd party if I deliver the information electronically.

My company has about 10 old computers that we want to get rid of, and we figured it’s better to donate them than to just throw them out – and our accountant says we can get a tax deduction from the donation.

We found a private business that said they can draft up a "donation receipt" for us for tax purposes, but they are not a certified charitable organization.

If we give our computers to them, would we still be able to get a tax deduction from the donation, just from the "donation receipt"?
I like to clarify that there are 10 (TEN in number) computers, not 10 YEAR old computers.

If I put advertising on my vehicle for my business, can I deduct the costs of operating that vehicle for tax purposes?

My husband and I, have an in-home businesses and I am looking to make sure I don’t cheat myself out of any tax benefits. Therefore, I pose this question. Since, I am technically buying the groceries to feed employees of "our" business. And during these meals we often talk about business strategies and planning. SO for tax purposes am I allowed to use the groceries purchased as a business expense.