Can i take deductions for a home based business beyond the revenue i brought in?
mwright555 asked:
I under withheld in my regular full time job and owe alot in taxes…i have a part time home based business that i spent alot more on than i made, can i use deductions to offset the revenue as well as lower my gross income from my regular job? I read u can only use the deductions up to whatever the revenue was for the home based business?
Do you like Tattoo’s ?
I under withheld in my regular full time job and owe alot in taxes…i have a part time home based business that i spent alot more on than i made, can i use deductions to offset the revenue as well as lower my gross income from my regular job? I read u can only use the deductions up to whatever the revenue was for the home based business?
Do you like Tattoo’s ?
Tags: Full Time Job, Gross Income, Part Time
If you are really trying to make it into a business, then yes it’s possible to take deductions for more expenses than you had revenue for the year. But if the IRS declares it a hobby, your deductions would be limited to your revenue.
Yes.
But you have to have detailed records.
If something is shared with the household, like phone, or internet service, or computer, Keep detailed logs.
Same for personal car used for business.
Get the IRS publication on in home office.
Space designated for office should be a room of its own.
deducat rent, heat, elect based on the ratio of Sq feet in office to sq feet in house.
Anything bought for making money and used in the office is deductible:
stamps, paper, toner (if not shared), chairs, shipping material, cost of business checking, safe, all telephone exculsive to business.
Professional magazines keep in office.
Pro rate property tax or rent.
There are many programs out there on internet to choose from for starting your home based business. However finding the right program is essential for you because with lots of real opportunities there are some scam programs also. Google Adsense, Affiliate programs (Click Bank is right place), selling your own product, Text Link Ads are some real opportunity which you can use. So just pick any of business models and start doing it.