Questions About Doing Business Taxes for the First Time

[cookingwithdot]

Hi everyone,
This is my first year, so the first time I will be doing business taxes. I have some questions. First off, how do most of you do your taxes? Through an accountant? H&R Block type business? Or do it yourself tax software like TurboTax? I have been using TurboTax for several years for my personal taxes, so I thought I would just use the home & business version. Have any of you done this? I assume the software purchase will be something I can write off next year. Also, will our tax info be available by Jan 31? As far as writing off computer, phone & cell phone usage and even car usage, how do you figure out %?

Thanks!!

 

[esavvymom]

We use Turbo Tax...I think just the premiere - but that's my DH's area of the finances. I handle the day-to-day. If you purchase your software in 2009, you can claim it as a deduction on your 2009 taxes. if you purchase it in 2010- then it would be for next year.And as far as I know and remember, all tax W2s and 1099s are supposed to be postmarked by Jan 31st...but don't quote me on that. I know that's the case for W2s but can't remember for 1099's - which is what we get from PC.
For my car- I count mileage. You can't count gas and car payments, etc AND mileage- I think it's either/or. I do the mileage. P3 has a section for Expenses that you can easily enter all of that in. HOPEFULLY you've been doing it all along, but if not, go back through your calendar and at the very least, enter the mileage for your shows and events. (I calculate mileage from my address to the hosts via Mapquest or Google Maps- if I didn't track it on my odometer- which I rarely remember to do).I think for other things, you want to calculate how much of it is for business, like my cell phone is my work # and on all of my contact info, but i also use it for personal...so I'll probably only claim 50-75% of it's bill.Others will have tips and suggestions too.

 

[pcchefjane]

Don't forget when you count mileage, you get it to the bank as well to Cluster Meetings, trainings, deliveries, booths, money "pickups", etc. If you go to Walmart and give someone a catalog, you can count that mileage as well.

 

[niktim3]

HOw do you put in for misc. items. Like paper, ink, etc. Do you just put it under each show? Like when I do mailings, I do save my post office reciepts, but not sure where to put it exactly??
Thanks!
Happy New Year!

 

[esavvymom]

HOw do you put in for misc. items. Like paper, ink, etc. Do you just put it under each show? Like when I do mailings, I do save my post office receipts, but not sure where to put it exactly??
Thanks!
Happy New Year!

I count that as Supplies, etc (or whatever category you want to create- you can modify those in P3 by the way). I have those as categories of "Home Office", and "Postage" for example. I also have an "Advertising" and a "Training" category too. It doesn't have to be associated with a specific show to be allowed as a tax deduction. As long as you can show it was used in your business.BTW: to create or edit the categories in the P3 expenses section, you'll see the "Edit Categories" link when you get the pop-up box to create a new expense. It's under the Category window.

 

[niktim3]

THanks for the tips on how to actually do this!!!
Going to do that tomorrow!
Happy New Year!

 

[j&k'smom]

Are personal orders tax deductible?

 

[raebates]

I believe they're only deductible if what you purchased was used for business purposes (kit enhancement, charitable donations, door prizes, etc.).

 

[Beth1170]

For anyone who has alot of questions, you may consider having them done by someone. There is a coupon for $25 off tax preparation by H&R Block on consultants corner under Pampered Perks. This discount applies to their software as well.

Check out their main website for the latest tax updates and options for tax prep. I believe they even have a frequently asked questions page. They offer an online prep where you do it yourself and they will do a double check for you. If anyone is in the Cleveland, OH area I will be working at an office in Lakewood at the corner of Riverside and Detroit. Send me a message and I will forward you the number. I would love the opportunity to help out my friends.

 

[lauriedip]

does anyone have a list of titles for what we should put all our deductions under? This is my first year and want to have it all ready for the tax guy. I need to know what goes under what, like booth fees, etc.
thank you
laurie

 

[wadesgirl]

You can search for a Schedule C and see what they ask for.

 

[mrshamel3808]

So i've only ever done a 1040EZ. I have kept track of most of my expenses and think I'll come out as a loss but don't even know what form I should use to file to be able to enter deductions...help? lol