Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-27-2008, 12:09 PM
Junior Member
 
Join Date: Mar 2008
Posts: 1
Wink Maximize benefit with low project income in year 1

I am forming my own consulting company working from home this year. I am suggested to use sole proprietorship as a struction. I got one client now and will be paid roughly $36,000 a year. The company is very close to where I live and I only go in when needed. The problem is that I have other income which put in the 45% and higher tax bucket to start with. Should I buy a car for this company? and I am thinking to set up an office at home and buy some office furniture, add internet, and home phone. Of corse, I will look for other opportunities as well. Any suggestions as things to do so I can get legitment tax benefit from this income? Thanks



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 03-28-2008, 08:50 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
A caution of advise is that it is always prudent and safe nowadays to claim only legitamate expenses when filing your personal tax return. With the current IRS audit environment, an audit adjustment can be potentially very expensive.

However, that should not deter you from claiming your allowable business expenses. An Office at Home usually results in additional IRS scrutiny, so please follow the rules regarding claiming an Office at Home.

Now, for additional ideas and suggestions please refer to this link that provides some of the typical expenses that a consultant may be able to claim.

Tax savings strategy for self-employed IT consultant

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


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
What can I do if some prior year 1099-MISC income was omitted from a 2006 tax return? Pearl Income 2 05-14-2008 09:54 PM
I owe prior year federal income tax liabilities, will my rebate check be affected? TaxGuru For 2008 0 03-11-2008 12:14 PM
1099M Income and what tax year to report Stevec1951 Income 1 02-29-2008 06:04 PM
2007 Changes to Qualified Transportation Fringe Benefit TaxGuru Miscellaneous 0 12-01-2007 11:00 PM
Can you suggest year end strategies for reducing year end self employment income? awkan Sole-Proprietorship 1 02-08-2007 11:59 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