Small Business Questions

[armogensen]

Hi - 

I'm looking for answers to the following questions:

I have an LLC and am a subcontractor to another contractor.  I get reimbursed for my expenses and mileage.  Will the 1099 that she provides only have the actual labor amount minus the expenses and mileage reimbursements or will it have it all?  

Can I claim part of my internet as a business expense?  

I wrote a children's ebook that I will be posting on Amazon.  The sales from that - would it be better to put under my name or my LLC?

I sold a house this year but capital gains was well below the cut-off.  Just confirming that I won't have to pay federal or state taxes on that.

I may also be receiving an inheritance from my grandmother's estate.  Again, confirming that I won't have to pay federal or state taxes on that.

Thanks,

Angie

[Kelly Thomas C]

I have an LLC and am a subcontractor to another contractor.  I get reimbursed for my expenses and mileage.  Will the 1099 that she provides only have the actual labor amount minus the expenses and mileage reimbursements or will it have it all?  

1) Q: Can I claim part of my internet as a business expense?  

A: If you use your internet as part of your busines, you can deduct it as a business expense. You will want to allocate a percentage of internet for personal use.

2) Q: I wrote a children's ebook that I will be posting on Amazon.  The sales from that - would it be better to put under my name or my LLC?.

A: If you have an LLC and a bank account for your LLC, I would put your business revenues from Amazon in the name of the LLC.

3) Q: I sold a house this year but capital gains was well below the cut-off.  Just confirming that I won't have to pay federal or state taxes on that.

A: If you sold your personal residence, you might qualify for an exemption from federal capital gains tax. And if there is a capital gains because you don't qualify for this exemption, if the gain is small enough enough might qualify for the 0% federal capital gains tax. You need to be aware of any STATE capital gains. State with capital gains tax have different taxation rules.

4) Q: I may also be receiving an inheritance from my grandmother's estate.  Again, confirming that I won't have to pay federal or state taxes on that.

A; Generally speaking this is correct. Since I don't know the size of the estate, don't rely upon the answer for your tax advice. Be aware if you receive assets that appreciate in value after you have received them (check basis dates for inherited assets), you would be subject to gain on your sale of those assets depending on if those assets appreciated in value after you inherited them.

I hope this is helpful to you.

Kelly C.

CPA 

[armogensen]

Thanks Kelly - appreciate it! Looks like one question wasn't answered:

I have an LLC and am a subcontractor to another contractor. I get reimbursed for my expenses and mileage. Will the 1099 that the contractor provides only have the actual labor amount minus the expenses and mileage reimbursements or will it have it all?

Thanks!

[Kelly Thomas C]

You will need to determine if the Contractor included your expense reimbursement in your 1099-NEC total or not. If it was included, you will want to add those expense amounts to your expense category totals. If it was NOT included, you will NOT report it as income or expense, rather a no tax impact expense reimbursement.

I hope this is helpful to you.

Kelly C.

CPA