What Are The Tax Right Off's W/ A LLC?
What are the Tax right off's w/ a LLC?
Can you right off your vehicle or home office, supplies www.etc.etc... ?
What are the Tax right off's w/ a LLC?
Can you right off your vehicle or home office, supplies www.etc.etc... ?
If you want to learn or business taxes? All you have to do is access www.irs.ustreas.gov/prod/bus_info-bus_help.html
Let's run you through tax 101
1) Home Office – based on square footage of room used For example, you have a 2,000 square footage home and are using a room that is 200 square feet or 10% of the total square footage You can claim 10% of household expenses such as insurance, utilities, repairs, etc…
2) Meals – 50% deduction on meals for travel with overnight stay Per Diem – “based on area”, a dollar allowance per day with no receipts
3) Entertainment – 50% deduction Spend up to $75 – no receipts necessary, but document in day planner Document – who, what cost, where, purpose of meeting and when (date)
4) Travel – 100% of all expenses such as parking, tolls, rental cars, airplane tickets, hotels, etc… Must keep all receipts and document the purpose of travel!
5) Auto – Mileage vs. Actual Expenses Mileage is the best option in most cases. 37.5¢ per mile (business use) Recommendation: Keep a mileage log in your auto! Actual expense is allowed if you use your auto for more than 50% for business purpose.
Expenses include insurance, interest, maintenance, repairs, gasoline, tolls, parking, etc…
Keep all receipts!
Once you start with the actual method, you must remain with that reporting system until you sell or trade the auto.
Depreciation Section 179 – purchase a 6,000 lb. rated Truck or SUV and use the auto for more than 50% for your business, allowance up to $100,000 deduction for the auto purchase Also included, office furniture and equipment such as computer, fax machine, camera, etc…
6) Agri Buz Plan - $175 setup cost per year Count spouse as employee of your business and must perform services for business Keep time cards and file payroll report
Section 105 – Medical Reimbursement Plan
Claim insurance premiums, plus any out of pocket expenses
$3,000 premiums
3,000 out of pocket
$6,000 total expense @ 48.3% = $2,898 cash tax savings
7) Kids’ Salaries – up to $4,000 per year per child Child must be under 17 years of age and at least a reasonable age Must keep time cards and file payroll report On a W-2 a child can make up to $4,700 without filing a return No federal, state, FICA withholdings for earnings less than $4,750
Retirement Plans:
1) IRA – $3,000 per year for individuals under age 50; $3,500 for individuals over age 50
2) SEP – Limited to 15% of earnings per year
$50,000 x 15% = $7,500
Must set up for all employees
3) KEOGH – Limited to 25% of earned income per year
New tax law will allow up to 30% deduction
Best plan for self-employed individuals, but is not available for S-Corp. or C-Corp.
4) SIMPLE IRA – Limited to $9,000 per year
5) 401 K – Limited to $13,000 per year
[addsig]
"Depreciation Section 179 – purchase a 6,000 lb. rated Truck or SUV and use the auto for more than 50% for your business, allowance up to $100,000 deduction for the auto purchase"
this changed after oct of 2004. it 14000 pound for hte 100k deduction, and anything less is up 25k deduction
Use a Subchapter S Corp (if possible) when flipping or doing sandwich leases, because you will avoid self-employment tax. You will still pay 15.3 percent on your salary (which you will make as low as you can reasonably justify). An LLC is fine for ownership, because rental income is exempt from social security tax; otherwise, you will pay the 15.3 percent on all profits. With flipping and sandwich L/O real estate, you have no tax benefits of ownership. Income is business income and rent to the Seller is a business expense. In this regard, an LLC is just like a sole-proprietorship (for tax purposes). An "S" Corp can also own other "S" Corps, but you only have to file one information return (1120 S) for all of them.
[addsig]
Quote:
On 2004-11-26 21:45, JohnMichael wrote:
If you want to learn or business taxes? All you have to do is access http://www.irs.ustreas.gov/prod/bus_info-bus_help.html
Let's run you through tax 101
1) Home Office – based on square footage of room used For example, you have a 2,000 square footage home and are using a room that is 200 square feet or 10% of the total square footage You can claim 10% of household expenses such as insurance, utilities, repairs, etc…
2) Meals – 50% deduction on meals for travel with overnight stay Per Diem – “based on area”, a dollar allowance per day with no receipts
3) Entertainment – 50% deduction Spend up to $75 – no receipts necessary, but document in day planner Document – who, what cost, where, purpose of meeting and when (date)
4) Travel – 100% of all expenses such as parking, tolls, rental cars, airplane tickets, hotels, etc… Must keep all receipts and document the purpose of travel!
5) Auto – Mileage vs. Actual Expenses Mileage is the best option in most cases. 37.5¢ per mile (business use) Recommendation: Keep a mileage log in your auto! Actual expense is allowed if you use your auto for more than 50% for business purpose.
Expenses include insurance, interest, maintenance, repairs, gasoline, tolls, parking, etc…
Keep all receipts!
Once you start with the actual method, you must remain with that reporting system until you sell or trade the auto.
Depreciation Section 179 – purchase a 6,000 lb. rated Truck or SUV and use the auto for more than 50% for your business, allowance up to $100,000 deduction for the auto purchase Also included, office furniture and equipment such as computer, fax machine, camera, etc…
6) Agri Buz Plan - $175 setup cost per year Count spouse as employee of your business and must perform services for business Keep time cards and file payroll report
Section 105 – Medical Reimbursement Plan
Claim insurance premiums, plus any out of pocket expenses
$3,000 premiums
3,000 out of pocket
$6,000 total expense @ 48.3% = $2,898 cash tax savings
7) Kids’ Salaries – up to $4,000 per year per child Child must be under 17 years of age and at least a reasonable age Must keep time cards and file payroll report On a W-2 a child can make up to $4,700 without filing a return No federal, state, FICA withholdings for earnings less than $4,750
Retirement Plans:
1) IRA – $3,000 per year for individuals under age 50; $3,500 for individuals over age 50
2) SEP – Limited to 15% of earnings per year
$50,000 x 15% = $7,500
Must set up for all employees
3) KEOGH – Limited to 25% of earned income per year
New tax law will allow up to 30% deduction
Best plan for self-employed individuals, but is not available for S-Corp. or C-Corp.
4) SIMPLE IRA – Limited to $9,000 per year
5) 401 K – Limited to $13,000 per year
thnks a million.... To qualify for a write off do you have to purchase a truck or suv after a llc is established or It doesnt matter?