Good evening,
My wife just started her own therapist practice this year. She organized as a Professional Liability Company (PLC). We are married filing jointly and I understand we will report the income and expenses from her business on our individual return this year. I have several questions regarding to the tax impacts of her starting her new business:
1) Her business began in late Q3 (September). She will not be earning more money that she will expend in 2023, therefore she will have a business loss for 2023. Confirming I don't need to worry about estimating taxes for Q4 2023.?
2) At what point do I need to estimate and pay for taxes on a quarterly basis? Is it when she expects earns more than she expenses and estimated taxes are greater than $1,000?
3) How do I report her new business income and expenses in our individual tax return?
4) Assume her business loss for 2023 will offset our individual income dollar for dollar from my salary and other income like dividends, etc?
5) Are there any limits to how much organizational start-up businesses expenses we can deduct on our 1040 tax return for this year?
6) Are all other business expenses (ie, rent for office, furniture for office location, mileage traveling to/from office, internet, utilities, etc.) not related to start-up expenses deductible on our tax return?
7) Is there a first year business tax deductions available for businesses starting like hers, even if she has a business loss (expenses greater than income) in this first year?
😎 Any tips/calculators out there to help me determine her estimated quarterly tax payments for the business starting in 2024 once she meets the criteria for us to pay quarterly taxes on the business?
