Welcome Guest. Register Now!  


Itemized Deductions Schedule-A


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-09-2015, 02:36 PM
Junior Member
 
Join Date: Nov 2015
Posts: 1
At point does it make sense to go LLC

Hello,

I'm an amateur photographer that occasionally gets paid for their work. My return is usually linked to how much I want to take on, which normally isn't a whole lot. However, I do receive small revenue from this work, usually only a few thousand dollars a year.

At what point does it make sense for me to file LLC and use the tax deductions associated with this and create a larger tax shelter umbrella? I already itemize my general taxes and am looking for help; especially since the costs associated with photography are so high. Keep in mind that I could probably generate more than the estimated few thousand dollars if I were "incentivized" to do so.

I am a single male that makes over 100k a year with my normal job so I am absolutely getting killed on taxes.

Any insight or ideas would be great!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 11-09-2015, 03:43 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,227
I'm an amateur photographer that occasionally gets paid for their work. My return is usually linked to how much I want to take on, which normally isn't a whole lot. However, I do receive small revenue from this work, usually only a few thousand dollars a year.

At what point does it make sense for me to file LLC and use the tax deductions associated with this?=========>>If you want to
set up a LLC, you as a sole owner, need to establish a SMLLC, a very common form of business ownership for a solo business owner formed under state laws and regulations , NOT LLC;your SMLLC pays income tax as a sole proprietor. That is, the business taxesare filed using Sch C and the net income of the business is incorporated into your personal tax return on 1040 . so you may claim all ofyour BUSINESS related expenses on your SCh C of 1040.Aslongas the amt on SCh C line 29 / 31 is $400 or exceeds $400, then you need to file return and also if the amt on Sch SE line 2 / 3 is also $400 or exceeds $400 then you need to pay self employment tax but can claim 50% of your SECA tax on your 1040 line 27.



. . . and create a larger tax shelter umbrella?=====>.I guess it deepens; To be deductible, your business expense must be both ordinary and necessary, common and accepted in your trade / business. A necessary expense is one that is helpful and appropriate for your trade / business. An expense does not have to be indispensable to be considered necessary.

I already itemize my general taxes and am looking for help; especially since the costs associated with photography are so high. Keep in mind that I could probably generate more than the estimated few thousand dollars if I were "incentivized" to do so. =======>>>>. Correrct; you need to itemize your expenses on your SCh A of 1040 ; when it comes to reducing your taxable income, itemizing your deductions can really maximize your tax savings. The benefit of itemizing is that it allows you to claim a larger deduction that the standard deduction. You need to maintain records of all your expenses.


I am a single male that makes over 100k a year with my normal job so I am absolutely getting killed on taxes. =========>>UNLESS your W2 income is $118,500 or exceeds $118,500, then you still need to pay both fica taxes on your reg W2 income and self employment on your self employer income as an amateur photographer.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
K-1 amounts don't make sense Runabout1 Miscellaneous 1 04-10-2015 02:04 PM
Does negative allowed loss on 8582 make sense? stephrich4 Rental Real-Estate 1 03-30-2015 04:13 AM
Lender paid point deductible? oliva Rental Real-Estate 5 02-24-2013 04:11 PM
From the IRS point of view, what would cause my 2 member partnership to terminate? katlee Limited Liability Company 0 07-30-2008 11:45 PM
Why IRA's for Children with earned income really make sense? TaxGuru General 0 01-26-2008 05:06 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning