7 Keys to Deducting it All » personal

Q&A: Are business expenses deductible if paid for with personal money?

Sat, 20 Apr 2013 21:57:11 +0000

Question by xxmadonna722xx: Are business expenses deductible if paid for with personal money?
My boyfriend and I recently started up a small home business, and being that tax season is coming we were wondering on something.

1. What percent of a tax preparer’s and accountant’s fees are tax deductible for our business?

2. The tricky part- my boyfriend (he is the business owner) would be paying for these expenses with his own personal money, not money profited from the business. Does this matter?
We are a C-Corporation as well.

Best answer:

Answer by v b
Congratulations, you are a partnership.

1. All partnership income is reported first on the form 1065, then on your individual tax returns. You report all professional fees on this form.

2. The business expenses paid with personal funds are accounted for depending on your written partnership agreement. If that agreement say you pay for items yourself, you deduct them on schedule E. If that agreement doesn’t (or there isn’t one), then it’s considered to be paid by the partnership (with corresponding funds adding to capital) and reported ont he 1065.

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How to file business and personal taxes jointly online?

Thu, 04 Apr 2013 21:50:58 +0000

Question by Jason: How to file business and personal taxes jointly online?
I own a small business that is seasonal and I operate during the summer. During the winter I work a seasonal hourly job.What process should I use to I file taxes jointly online? What is the best service to use to use to do this in terms of ease of use and cost? I would like to get the maximum refund on my personal taxes while citing deductions from my small business.

Best answer:

Answer by Dave
Is your business a sole proprietorship? If so, then you are self-employed in addition to your seasonal hourly job. There is no separate “business return.” Everything goes on your 1040 plus required schedules.

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Can I do my personal taxes before my business taxes?

Wed, 10 Oct 2012 19:47:03 +0000

Question by Where is the brotherhood?: Can I do my personal taxes before my business taxes?
I have a small business and since the economy has been bad I am cutting back so I am going to do my own taxes this year. I have a s-corp and pay myself just like a regular job, take taxes out etc. Can I file my personal taxes before my business taxes?

Best answer:

Answer by Wayne Z
No.

The S-Corp generates a K-1 for each of it’s shareholders.

The income/losses from the K-1 are reported on your personal tax return.

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Can I file my personal taxes separate from my business taxes?

Wed, 26 Sep 2012 09:58:31 +0000

Question by DW: Can I file my personal taxes separate from my business taxes?
I have (2) W2′s and some other miscellaneous income from checking accounts, etc. and have a 1099-misc for my small business. Can I file my small business at H&R Block and file my personal taxes online? Please let me know if this is possible. THANKS!

Best answer:

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Can I file my personal taxes separate from my business taxes?

Fri, 31 Aug 2012 19:32:26 +0000

Question by DW: Can I file my personal taxes separate from my business taxes?
I have a small business and receive a 1099-misc for this from another company that subcontracts us out. Therefore, I do not have a LLC, sole priortieor, etc. I just do jobs for this other company.
I also have (2) W2′s and some other miscellaneous income from checking accounts, etc. Can I file my small business at H&R Block and file my personal taxes online? Please let me know if this is possible. THANKS!

Best answer:

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Q&A: Are small business earnings treated the same as personal income for taxes?

Mon, 20 Feb 2012 03:04:40 +0000

Question by Joe: Are small business earnings treated the same as personal income for taxes?
A friend argued that progressive taxation hits small business income, because, in addition to individuals making over a certain amount, it also targets the total earnings of small business (before recouping expenses and paying employees)

In other words, If a small business pulls in $ 300k a year, but has to pay $ 150k in expenses and $ 100k in payroll (leaving $ 50k salary for the business owner), is the entire $ 300k hit by income taxes or just the $ 50k?

Thanks.

Best answer:

Answer by v b
It’s after expenses–which includes employees.

This true for all business structures…though the there is a huge difference for all owners between being a sole proprietorship/partner vs being a corporation.

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Q&A: I started a small at home business last year, do I have to file this under my personal taxes?

Sat, 07 Jan 2012 21:43:54 +0000

Question by Hollywood: I started a small at home business last year, do I have to file this under my personal taxes?
I will be filing my business taxes seperately but wanted to know if I needed to file it under my personal taxes too?

Best answer:

Answer by RANDALL M
If you are operating as a sole proprietor, You will use a schedule C which will be attached to your 1040.

If you are a Subchapter S corp, you will file that separately but will generate a K-1 that will be used to file your 1040.

If you are a C corp, it will file by itself and you will report any W-2 income or 1099 dividends you receive from it on your personal 1040.

If you are an LLC, you have already decided the business form you should use to file.

Hope this helps, good luck with that.

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What is the going rate per monthr for an accountant to do personal, small business tax, and perhaps financial?

Mon, 05 Dec 2011 07:17:33 +0000

Question by Cherry S: What is the going rate per monthr for an accountant to do personal, small business tax, and perhaps financial?
What is the going rate per monthr for an accountant to do personal, small business tax, and perhaps financial advice? I am in the houston, texas?

Best answer:

Answer by truebluemarie
It is impossible to give a rate with any degree of accuracy without know more about your business.

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Small business and personal taxes of LLC?

Sun, 11 Sep 2011 10:32:34 +0000

Question by Hollywood: Small business and personal taxes of LLC?
Myself and my partner Tiffanee started an LLC Partnership in February of 07. For taxes do I file my personal taxes first then file my business taxes or how would I or we do this. We both own 50% of the business. Please help. Thank you
Also, we are having someone prepare our business taxes for us, what do we need to bring in order for him to do this? Any information will help…thanks

Best answer:

Answer by Arthur R
Calculate your business taxes first, as most LLCs are _primarily_ pass-through entities. The K-1s you prepare will show you what needs to be filed on your personal returns.

As for what information you’ll need for the business returns, IRS Publications 334 (Tax Guide for Small Business), 535 (Business Expenses), 463 (Travel, Entertainment, Gift, and Car Expenses), and 583 (Starting a Business and Keeping Records), and 946 (How to Depreciate Property) should be a good start. They’re all available online (in PDF and HTML formats), and by contacting the IRS (calling 1-800-TAX-FORM).

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Q&A: What licenses are needed in order to operate a business doing personal and small business taxes and returns?

Mon, 04 Jul 2011 14:32:00 +0000

Question by Mike W: What licenses are needed in order to operate a business doing personal and small business taxes and returns?

Best answer:

Answer by richards150
To do taxes for the public, you have to have a CPA. It’s like a master’s degree and the only legit way. I’ve thought about it too, but legally, you can’t do people’s taxes publicly. Now if you do a family member or friend’s taxes and they want to kick back some money to you for appreciation, then I think that is okay. But you can’t call yourself a tax person and advertise it.

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