I agree, I hear you can't even keep non business clothes in the closet.
On Thu, Jan 20, 2011 at 2:17 PM, Justin Scott <[email protected]> wrote: > >> So I need to gather up receipts for the time I've been 1099 then. I'll >> probably take all this to H&R block and just not deal with it. I'm > > Personally, I'd stay away from H&R Block. They charge per form that > has to be filed and the people there, while qualified, are generally > part-time and not year-round CPAs who have intimate knowledge of the > finer points of the tax code. Find a decent independent CPA or tax > firm and spend the extra time with them to do it right. Form a > relationship with them and meet quarterly to review where you are and > estimate your tax burden and make adjustments as you go through the > year. You'll probably save a lot of money in the long run. > > As for expenses, the last time I went down that hole I was told that > you can deduct a percentage of your rent/mortgage in proportion to the > total square footage of the home used for the business, but only if > that area of the home is used ONLY for the business. For example, if > your home office also doubles as an entertainment room for the kids on > the weekends, then it may be disqualified. The rules and advice I got > in that area were fuzzy, so talk to a CPA. > > As for expenses, track them and keep receipts. Usually you will need > to deduct expenses in the tax year the purchase was made. For some > items, such as computers and other relatively expensive fixed assets, > your accountant may suggest using a depreciation schedule to spread > the cost out over a number of years (i.e. you buy a computer in 2010 > and deduct 20% of its cost on your 2010 return, another 20% on the > 2011 return, and so on for five years). Usually this would be set up > in the tax year it was purchased, so if you bought a computer 3 years > ago and now only use it for your business, you may be out of luck to > deduct its use as an expense. > > Again, I'm not a CPA and this isn't tax advice. Talk to someone qualified. : ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:333617 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
