I have an at home based business. that actually provides a beauty service. I sell no product. But I have a designated room in my home for this. i dont have a corp or llc or s corp. i just work from home doing my service., to be more specific i do eyebrow threading. its an alyernative to facial waxing. I want to know whats the best way to take advantage of deduction with this type of business. I also get alot of payment thru cash. si what should i do before tax time to get the greatest return and avoid red flags and audits.
I dont own my home i rent, i have a designated room for this purpose, & I am not in india i am in the US. usually my husband and i do joint filling with him as the sole bread winner, Iam stay at home mom. But I started this, side work and it has turned out very well for me. so hearing about all the benifits of home based business, i wanted to see what i could do. would selling product be a way to legitmize my earnnings

my husband has been working for his mothers cleaning business for over two years..it was an under the table type of thing..he has asked her several times to make him a legal employee due to things such as our credit, buying a house, etc. so finally we asked her again..we now of course, she decides she wants him to sign a subcontractors agreement…
why do we feel screwed all of a sudden? i’m not an idiot, i get what she is doing here..so basically this means, she pays him and its a deduction for her when tax time comes around…and he has to pay his own taxes? am i right on this, or totally off base? is this something we should involve our lawyer in or an accountant?

i know its her business but we have been asking her about him being her employee since the beginning and all of a sudden it seems like she ways to cut corners.. an unbiased opinion would be nice anything is better than nothing..i have to talk to her tomorrow about it and i need some back up..thank you..

tax time

Have you heard about the $8,000 tax credit for first time home buyers? Wondering if you qualify? Read below for the highlights.

$8,000 tax credit qualifications:

* To qualify, you must be purchasing a primary residence with a purchase price of $800,000 or less.

* You must have an executed agreement of sale by April 30th, 2010 and go to settlement by June 30, 2010.

* Income limits are $125,000 for single buyers and $225,000 for married couples.

* Current homeowners are eligible for a $6,500 tax credit provided you have lived in the home you are selling as a principle residence for five consecutive years.

How it works:

* All single family homes (including condo’s and co-ops) purchased as a primary residence will qualify for the tax credit if purchased by April 30, 2010 for less than $800,000 and closed by June 30, 2010.

* You are eligible for the full $8,000 if your adjusted gross income does not exceed $125,000 for single buyers or $225,000 for married couples. The tax credit is decreased for those who earn above the limit, but a portion of the tax credit is still available until the maximum limit is reached – $145,000 for an individual and $245,000 for joint income.

* It is important to know that the amount of your credit will first be applied to any tax liability for the year of the purchase and you will receive the difference as a refund. So if you had a $3,000 tax liability you would receive a check for the difference, or $5,000.

With interest rates at historical lows, the current tax credit for home buyers is a truly unique opportunity. So if you’re looking for a new home or your first home, this is a great time to transition. Low mortgage rates and free money from the government make for an excellent incentive to buy a home.

Have additional questions or need a referral for a great Realtor? Email me at tara.m.gore@wellsfargo.com or visit my website at www.taramgore.com.

Please follow me at twitter.com/MissMortgagePA

About the Author: Tara Gore is a home mortgage consultant working for Wells Fargo in beautiful historic Center City Philadelphia. She specializes in new construction financing and works closely with various developers as their preferred lender. Please feel free to contact her with questions at taramgore.com.

Tax Time???

Tax Time
A woman walks into an accountant’s office and tells him that she needs to
file her taxes. The accountant says, before we begin, I’ll need to ask
you a few questions. He gets her name, address, social security number,
etc. and then asks, What’s your occupation? I’m a Lady of the night, she
says. The accountant is somewhat taken aback and says, let’s try to
rephrase that. The woman says, OK, I’m a high-end call girl. No, that
still won’t work. Try again. They both think for a minute, then the
woman says, I’m an elite chicken farmer. T he accountant asks, What does
chicken farming have to do with being a call girl? Well, I raised a
thousand little peckers last year. Chicken farmer it is.

Very good –
My favourite call girl joke is:
Sister Catherine was asking all the Catholic school children in fourth grade what they want to be when they grow up.
Little Sheila said, “When I grow up, I want to be a prostitute!”
Sister Catherine’s eyes grow wide and she barked, “What did you say?!”
“A prostitute!” Sheila repeats.
Sister Catherine breathes a sight of relief and says “Whew! Thank God! I thought you said ‘A Protestant’!”

TAX TIME

I’m looking for some info on filing income from being an independent contractor. I worked 6 months in 2008 doing contract work (graphic design). I gave the company invoices and was paid monthly with no taxes or other deductions taken off. I’ve been putting aside a certain amount from each cheque based on an income tax calculator.

Now that it’s almost tax time, I’m not sure how to file this income – I usually use Quicktax or another software to do it myself. Do I claim it as small business income (T2125)? I read that if you make under 30k (my amount is roughly 20k) from small business, you don’t need a GST number – I don’t have a GST number so I am hoping this is correct.

I may end up getting an accountant to do my taxes for me, but if it itsn’t too complicated I’d like to do it myself as I like to learn about these things and do it on my own.

I have a fidelity mycash account to use for my business account. I am getting started as a real estate sales agent. So that I have everything in order for tax time, what are some accounts that I should pay strictly with that account? I figure bills like car insurance, dues and business cards, but what else?

I have an at home based business. that actually provides a beauty service. I sell no product. But I have a designated room in my home for this. i dont have a corp or llc or s corp. i just work from home doing my service., to be more specific i do eyebrow threading. its an alyernative to facial waxing. I want to know whats the best way to take advantage of deduction with this type of business. I also get alot of payment thru cash. si what should i do before tax time to get the greatest return and avoid red flags and audits.
I dont own my home i rent, i have a designated room for this purpose, & I am not in india i am in the US. usually my husband and i do joint filling with him as the sole bread winner, Iam stay at home mom. But I started this, side work and it has turned out very well for me. so hearing about all the benifits of home based business, i wanted to see what i could do. would selling product be a way to solidfy my earnings???

I have an at home based business. that actually provides a beauty service. I sell no product. But I have a designated room in my home for this. i dont have a corp or llc or s corp. i just work from home doing my service., to be more specific i do eyebrow threading. its an alyernative to facial waxing. I want to know whats the best way to take advantage of deduction with this type of business. I also get alot of payment thru cash. si what should i do before tax time to get the greatest return and avoid red flags and audits.
I dont own my home i rent, i have a designated room for this purpose, & I am not in india i am in the US. usually my husband and i do joint filling with him as the sole bread winner, Iam stay at home mom. But I started this, side work and it has turned out very well for me. so hearing about all the benifits of home based business, i wanted to see what i could do. would selling product be a way to legitmize my earnnings

I started up a little business under my own name last year, doing freelance graphic design. I never got around to formally "registering" my business or anything. Now its tax time. Can I take deductions still?

Ok, say I made a web site for a friend. They gave me $$$ to do it. I get more friends asking me to make sites & pay me $$$ too! I make some business cards & brochures too & get paid. Tax time is coming now – how do I pay taxes on this income? I’ve made a business site – for making sites & designing. How do I claim this business income? What deductions can I take off? How do I record/prove my income from this business? What forms do I need to file? What do I need to take to a CPA? My journal? Bank acct. records? How do I show what I did? what if I was paid cash? This is just an example…but I want to be prepared.
About the cash…what if I don’t have a receipt? Just a deposit in my bank acct. & I only have a personal acct. Not a business one yet…that going to be a problem?

I work a second job from home, in a different state. When I took this job I was offered to do it through contracting or as a regular employee. I was advised by the company it would be easier for me to stay on as an employee rather than do contracting so my taxes were taken out automatically. I then stressed that if I am a regular employee working from home I need to be able to deduct house expenses from my W-2. I was assured I would be allowed to do this.

Now that tax time is upon us I decided to log into turbo tax. I could not find anywhere that allows me to deduct a portion of my rent, business supplies, electricity, the new PC I purchased to use for the job. I only see it for people that consult or for business owners.

Is there any way to deduct expenses on your tax return for a second job, run out of your house where you are employed with an employer?