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On the subject of taxes and trimming the fat.

Discussion in 'PUBLIC Vintage Chatter - Anything and everything' started by hatfeathers, Jan 15, 2005.

  1. Patentleathershoes

    Patentleathershoes VFG Veteran VFG Past President

    Okay, kind of like how my husband had to claim a certain portion of his computer equipment. but i won't claim depreciation on a manni :)

    Would i have to actually outline receiving the start up money or "beginning capital" or is that not an issue
     
  2. I just think you need to put what you purchased in different categories. You may want to put his start up money in "other income" if you want to report it.:D If it is a gift, I don't think you have to report it. That way, you could take a loss and take off of your joint taxable income.

    When you have a form Schedule C or C-EZ, you also have to have a form Schedule SE which figures your self employment tax.

    Just read over at IRS site that you file a schedule C-EZ with expenses up to $5000.00 instead of $2500.00 like last year. This is a very simple form. Just put income and expenses. No breaking down. However, you cannot take a loss in this form.

    Here is a link to what a Schedule C looks like. Click Here.
     
  3. dibs2002

    dibs2002 Registered Guest

    Form-phobic me runs screaming from this thread...
     
  4. Catboxvintage

    Catboxvintage Registered Guest

    Lizzie, internet service, in my case my cable modem, is indeed deductable.

    I have not claimed magazines myself because I don't really take any, but I would think that if you use them primarily for research they should fall under supplies.

    Same with the museum costs, if you went primarily to research for your business it should be deductible.

    As mentioned above, it's best to be as specific as you can without getting ridiculous. Say you're going through your purchases of stock to sell. In your notes you might have it broken down into each specific thrift, each auction by auctioneer, etc. On your tax forms you could just combine say "stock from auctions and thrifts" onto one line. Just keep your notes with your receipts and you'll be fine.

    I think my breakdown goes something like this:

    Stock
    Supplies
    Modem
    Mileage credit
    Donations

    I don't use a Misc. category. Anything odd that doesn't fit in one of the broader categories would get it's own line. I'm sure some accountants will do it differently from others, but as long as the basics are there and the numbers are correct and backed up with receipts and invoices there shouldn't be any problems.
     
  5. artisannes

    artisannes VFG Member VFG Past President

    What I would say if you are not sleeping with an accountant is find a bookeeper to set up an accounting book for you.

    You can explain exactly what your business entails and they can develop a suitable accounting system with all the right columns.

    Once you have that you can take it from there and fill it in yourself. But it is far easier to have a system and make yourself update it weekly than scrabble around looking for receipts and bits of paper when tax filing comes around.

    Also keep your receipts in monthly batches so that you can find them again by looking them up in the book and knowing which month's envelope to look in if you need them.

    It also means if you ever get inspected it shows you are being efficient and responsible. This will not only please the inspector but get 'em out of your house faster.
     

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