You have several questions to address.
The simplified method or detailed using Form 8829 are specifically for the home office.
- The simplified method allows a standard deduction of $5 per square foot of home used for business, with a maximum of 300 square feet.
- On form 8829 you will calculate the use of your home with a percentage of rent, mortgage, utilities and perhaps other home expenses.
Given this is my first year of business, do I have to use a specific method for expenses?
No, you may elect either
Must I choose the same expense method in future years or can the method vary year-to-year?
No, You may elect to use either the simplified method or the standard method for any taxable year. However, once you have elected a method for a taxable year, you cannot later change to the other method for that same year.
Does claiming the standard deduction on my personal taxes impact which home business expense method I must use?
No, The Schedule C election of either method is separate from Your personal tax return.
Can I deduct TurboTax fees from Schedule C?
Yes, but you will have to split the cost between the Schedule C and Your personal return. This can be a 50/50 split
Can I deduct my LLC formation fees and state license fees (incurred December 2022) and my LLC renewal fees and state license fees (incurred December 2023) from Schedule C?
Yes, This and other setup fees are deductible to the business.
Can I deduct contributions I made throughout the year to my state's Family and Medical Leave program from Schedule C?
"Internal Revenue Code Section 45S provides a tax credit for employers who provide paid family and medical leave to their employees. Eligible employers may claim the credit, which is equal to a percentage of wages they pay to qualifying employees while they're on family and medical leave. The credit is effective for wages paid in taxable years beginning after December 31, 2017, and before January 1, 2026. For more information." Please see: Section 45S Employer Credit for Paid Family and Medical Leave
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