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Self employed
Hello, great questions!
- I'm unsure that if I can still write off my startup expenses from my gross income. They're tax deductible, right?
Startup expenses are usually taken as an expense for the first year that the business is filing a tax return. When you complete your schedule C, you will have the option to deduct start up expenses.
Please feel free to refer to the following IRS website for more information about how a business can deduct their startup costs.
https://www.irs.gov/newsroom/heres-how-businesses-can-deduct-startup-costs-from-their-federal-taxes
What if I include some tools (construction) and printers that I use for my business, but no receipt to show? (bought some of them months or years ago before I start the business). How can I write off them from my business income?
You will want to make sure that you are keeping accurate receipts and records for any items that are purchased for your business. The tools and printers should be included in the year in which they were first used for your business.
If you purchased something before you began setting up your business that you're now using for your business, you will end up depreciating the item based upon the fair market value of the item for when your business actually began.
If I choose to use cash method, then I can't include depreciation (as expenses, right? Which is the best way for a small business?
If you choose to use the cash method, you can still include depreciation for items that have a life of more than one year.
What can be depreciated over time and what can be expensed in one year can be a tricky issue, so feel free to review the following websites for more information:
https://ttlc.intuit.com/turbotax-support/en-us/help-article/expense-accounting/depreciation/L574TV1s...
https://turbotax.intuit.com/tax-tips/small-business-taxes/depreciation-of-business-assets/L4OStLQEL
Can I deduct my employee's car expenses (loan pmt; maintenance costs; gas, etc.) that are used for almost 100% business purposes?
If you are talking about car expenses that you use for your business, yes you can expense those items. The vehicles would need to be vehicles that you purchased and are using in your business.
The deduction for using vehicles in your business can sometimes be significant, so it's important to make the following decisions:
- Is it better to use the standard mileage rate as your deduction or the actual expenses incurred for a vehicle used for this business?
- Who should own the vehicle? The business, the business owner or the employee?
- Should the business buy or lease the vehicle?
We're no longer allowed to deduct tax preparation cost (turbotax live assist fee, etc.) as expenses, right?
You can only claim the amount of the fee that was accrued by preparing the business portion of your taxes.
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