I recently had the 'home office' discussion with my tax accountant. Apparently a recent rule change allows for a fixed deduction of $500/year with little documentation. It's similar to deducting the mileage rate (55.5 cents/mile, I think) instead of vehicle expenses. Of course, you may still track % of space and expenses if it's worth the effort.
Customized Business Services, LLC (928) 580-6352 Dennis Schuette Primary: [email protected] 350 West 16th Street, Suite 309 Alternate: [email protected] Yuma, AZ 85364 Map it -----Original Message----- From: ProfoxTech [mailto:[email protected]] On Behalf Of Mike Copeland Sent: Friday, March 07, 2014 12:37 PM To: [email protected] Subject: Re: [NF]: Pennsylvania Sales Tax Hmmm....well, as for the 401k, every time we have looked into that, the costs for maintenance far outweighed any advantages. You can't do your own maintenance as far as I understand it, and the companies that do charge some very hefty fees. We also have been advised against the rental of home space (and supporting utilities) being used as an expense/income, because if the area used for biz is, typically, a former spare bedroom, and (for example) a child or grandkid can wander in and play on the computer(s), then the IRS will put the stink-eye on counting that as a biz'ness area. I'm not saying no one does that or that you shouldn't, just that everything I've received (regarding 401k and writing off portions of the home for biz use) is a negative. (Besides, it also gets REALLY messy if you sell your house. Oye!) But the actual incorporation, and the annual returns (although expensive to have to pay for two return preps every year) and the payroll (you'll have to set up a full-blown payroll system, we use Quickbooks, and remit taxes, unemployement taxes, etc.) is pretty straightforward once it is set up. What I have successfully avoided so far is dealing with collecting and remitting sales tax. Mike -------- Original Message -------- Subject: Re: [NF]: Pennsylvania Sales Tax From: Paul McNett <[email protected]> To: [email protected] Date: 3/7/2014 1:21 PM > I know, I know. ;) > > And, being able to have the corporate vehicle, the household getting > rental income and the corp side writing the rent as expense, my > employer paying into my 401k, etc. etc. > > And also, these days corporate clients want to deal with other > corporations, not individuals, and this actually is starting to hurt > my opportunities, so I gotta do something soon. > > Thanks for telling me it is easier than I'm thinking. Because I'm > tempted to just go get regular employment. > > Paul > > > On 3/7/14, 11:03 AM, Mike Copeland wrote: >> Paul, I'm sure you figured you would hear this from someone, but we >> Inc'd back in 1999 and it was a lot easier than i anticipated. There >> are many advantages, not the least of is that things are more clear >> cut >> (divided) in pretty much every aspect of life and work. And, you get >> the instant payoff of a deduction in your payroll tax! >> >> Mike Copeland >> >> -------- Original Message -------- >> Subject: Re: [NF]: Pennsylvania Sales Tax >> From: Paul McNett <[email protected]> >> To: [email protected] >> Date: 3/7/2014 11:50 AM >>> On 3/7/14, 9:10 AM, Jim Harvey wrote: >>>> I'm going to be providing some computer programming services >>>> (creating and maintaining programs I wrote in VFP while employed) >>>> for my former employer, and have created an LLC for this purpose. >>> >>> Kudos for doing this upfront. When I went independent in 2000, I >>> deferred this decision (LLC, SCorp, ?) and never found time or >>> inclination to revisit it, so I'm still filing as sole proprietor. >>> >>> Now, I'd like to hire an employee, but I really can't until I fix my >>> legal status, which I just can't seem to find time for. >>> >>> Whenever it happens, it's going to be a mountain of work extricating >>> my business stuff from my household personal... >>> >>> Paul >>> >>> >>> [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://mail.leafe.com/mailman/listinfo/profox OT-free version of this list: http://mail.leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
