Taxes suck !

[Andis]

Originally Posted by Tomatoking [You must be logged in to view images. Log in or Register.]

Andis i pay more in taxes in 1 year then you will make in 5

PS i own 3 businesses

I laughed out loud

thanks for that

[Infectious]

Nothing is on the books so their is no way for it to come back on me. I dont own a store. I sub contract from a store , home depot and lowes. I give my accountant my bank statements and reciepts. Im allowed a certain amount on business dinners, clothes and so on. What I make for the year and what I claim for the year are two big differences.

[Rettii]

I'm a federal agent we need to talk.

[heartbrand]

Originally Posted by Infectious [You must be logged in to view images. Log in or Register.]

Nothing is on the books so their is no way for it to come back on me. I dont own a store. I sub contract from a store , home depot and lowes. I give my accountant my bank statements and reciepts. Im allowed a certain amount on business dinners, clothes and so on. What I make for the year and what I claim for the year are two big differences.

Clothes are mostly non-deductible personal expenses, but yet I see year in and year out clients come to me telling them H&R Block or whoever told them to deduct the cost of their "business" clothing. Here are the actual guidelines:



You must wear them as a condition of your employment.

The clothes must not be suitable for everyday wear.

It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.

Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.). Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.

How about a white cap, white shirt or white jacket, white bib overalls, and standard work shoes a painter is required by his union to wear on the job? Nope, it is not distinctive. Similarly, blue work clothes worn by a welder are not deductible even if the foreman requires them. However, required protective clothing like safety boots, safety glasses, hard hats, and work gloves are OK.


Also, the IRS can find out even if it's not reportable by comparing your reported income to things such as your reported mortgage interest deduction, or by using a method called reconstruction of income using bank deposits etc., see the IRM (Internal Revenue Manual, basically the "rule book" for the IRS) @ the following link: http://www.irs.gov/irm/part4/irm_04-010-004-cont01.html

When I was training, I had to attend several sessions of Tax Court. One of the cases was an individual who owned a small business and reported little income but yet had a huge house, fancy car, etc. The IRS used this method to estimate what they claimed was his income and wanted to assess a very large amount of tax based upon it. The IRS won, mainly because, in the U.S. Tax Court the burden of proof in ALMOST all circumstances is on the taxpayer unless you can "shift" the burden, something that goes beyond the scope of what needs to be said here. PM for more info.


Edit: While the rule I quoted about clothing is speaking in reference to W-2 employees who claim their expenses on their Schedule A misc. deductions, the same rule applies to self-employed individuals who claim them on their Schedule C.

[Rettii]

But Heartbrand, should I joust if I have 20 delay weapons? Also what's the preferred method of killing casters 55+ if they have crim pots. These are the real issues.

If Anyone needs a professional opinion about taxes, I'd recommend reading the FAQ's on H&R block website.

If you need a professional opinion on which phone is the most ergonomical because you plan to be a phone secretary or need a good thimble to help you organize paperwork and schedule meetings (general secretary work - can reach this level with a heald certificate even if high school dropout)... Well then HB got the answers for you.

[Xantille]

You should be charging these monkeys for this advice, HB bro

[Vile]

Originally Posted by Rogean [You must be logged in to view images. Log in or Register.]

Any smart business owner is also exaggerating expense deductions to pay less taxes [You must be logged in to view images. Log in or Register.]

gotta be careful still, but yes... [You must be logged in to view images. Log in or Register.]

[Tomatoking]

im exaggerating all expenses to hilarious levels

i even claim food for the cat that lives at my workshop

problem is i have 6 diff sources of income and if you evade , you get fucked hard.

btw to the guy that has the flooring company , does home depot let you bid on bulk materials ? i heard about that system which they supposedly took out years ago, now they dont even offer discounts other then tax free purchasing.


Apparently people abused the shit out of HDP And lowes

[Infectious]

No they supply the materials(carpet, tile, vinyl sheet goods) I supply the rest of the tools, vehicle, clothing and supplies to install product. Thats why I say fuck all that lawyer shit about this and that. And what the law is. Get yourself an accountant and they will break the law for you. I have been in business since 2002 and audited twice. And nothing happened. Just dont write off shit you dont have statements or reciepts for. Other then that I write off clothes, lunch and everything. Accountants know with an income of say $200k you are allowed 2k for clothes, 1k for lunch and so on. If you claim $20k on clothes you will be audited. If you stay within your guidelines (accountants problem) you will be fine. You think the irs combs thru your reciepts to see if the shirts are white?

[Rettii]

Originally Posted by Infectious [You must be logged in to view images. Log in or Register.]

You think the irs combs thru your reciepts to see if the shirts are white?

like I said - heartbrand is just a secretary that watches judge judy