Attention Tax Gurus

jrschultz

My wife and I previously filed joint tax returns and took the standard deduction. On the same joint form, now that I have a business, can we as a couple take a standard deduction and at the same time itemize my business expenses?

SLSTech

Sole Proprietor not Incorporated? Sure - your business P&L is calculated on a Schedule C while line 40 asks for

Quote:

40 Itemized deductions (from Schedule A) or your standard deduction (see left margin)

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jrschultz

Yeah, sole proprietor. Thanx for the answer.

IanS

Yes Schedule C.
Track your truck mileage the 1st 7 days of every month, and keep a log. Claim the .55 cents per mile or add up all your expenses(tires, oil, fuel, insurance etc)
I do the miles and .55 cents. Works for me
I use an excel sheet to track my expenses/ job and a master sheet with everything on it so I know how much I am making. You can deduct your website, your internet, office supplies, stamps, printer ink cartridges etc. Read and re- read everything if in doubt. Have a separate account for the business and if they ever come looking thats your main source of accounting. Keep your receipts in order by quarter. Pay income tax every quarter if you are an LLC. Self employment tax.
"irs.gov/pub/irs-pdf/f1040sc.pdf"
"irs.gov/pub/irs-pdf/f1040sse.pdf"
each of the above has instruction sheets separately. I could not post the links because this site won't let you until you have 15 posts.
also this is good: "irs.gov/pub/irs-pdf/p505.pdf"

Hire subs with legit business papers and if you need an occasional employee just use a temp labor place. They are expensive but its worth it in the long run.
That should keep you busy for a few months! These things are like a merry go round just not so merry with all the round and round trying to stay "legal". If you need more help ask!

jrschultz

Awesome advice...Thanx!