Business Tax Relief Help | Tax Amnesty

A big advantage of working from home is the tax benefits of operating a home based business. Working from home allows you to deduct portions of bills that you are already paying to live there. You can deduct home expenses if you actually work in your home. It is easiest to do this if you have a room set aside for your business. Measure out how big that room is in proportion to the house, and you can deduct expenses using that percentage. For example, if your place of doing business takes up 5% of your house, you can deduct 5% of your heating expenses for the days you work. (In other words, if you don't work weekends, you can't deduct for weekends.) You can deduct items such as mortgage interest (though not your mortgage itself), electricity, telephone, insurance, and expenses for maintenance and repair. In general, you can deduct the portion of expenses that directly relates to your business. You can deduct costs for your internet service provider in proportion to the amount you use it for your business, too. If it's used completely for business you can deduct it all, but be certain before you do this that you are not using it for other reasons. Having a CPA do your taxes for you has major benefits. They have computer software made up by tax pros and former IRS workers that you wouldn't ever be able to use unless you went through lots of accounting training. Be 100% honest with your CPA about everything. If you are called in for an audit your CPA will tell you to say nothing but your name and your CPA does all the talking. The IRS has to find mistakes not you. If a CPA does your tax you will get deductions you would never know to take and your CPA will also take away deductions you cannot legitimately take. A CPA will cost you more but will get you much more back. Tax filings done by CPAs are far less likely to be called in for audits because the IRS knows the CPA's reputation is at stake with every tax form filled out and so the CPA will be very careful that every little detail is done correctly. Keep a separate notebook for tax deductions and on each page make a heading for all possible deductions like advertising, supplies, repair parts, phone, computer, etc. and write them down and save ALL your receipts in a separate large envelope. Write your deductions in this notebook, everyday, as they happen. Remember, your tax preparation is a daily, year round effort and is an important part of your business. Write everything in your notebook that could be a deduction and then at the end of the year let your CPA decide what is and is not a deduction. He or she knows and you don't. It is their job to know. This way you won't miss out on any deductions you don't know for sure on and you won't take any deductions you don't have coming. Pretty neat huh? You will get a lot bigger income tax refund this way and have a clear conscience you did all the right things and you will not have any worries about a scary IRS audit. Talk over with your CPA what he thinks about the way you are keeping records and learn from him or her better ways to do it. They will usually have valuable tips for you to help you run your business better. This chit chat at the end of your tax preparation is invaluable to you. The tax benefits of operating a home based business enable you to deduct things you would otherwise be paying in full. If you are considering a business from home, it's a good way to lower your costs. This is just one more advantage of working from home. Source: http://www.irs.gov/faqs/faq-kw82.html Plus my own life business tax experience of over 40 years

Frequently Asked Questions

1. QUESTION:
   Why do Democrats not understand the differrence between a hand back and a hand out?
   Giving Americans and small business tax relief is "handing back" taxes they already paid

   Compared to what Obama wants to do

   And that is tax those who work and those who run small business to give hand outs to those unwilling to work.

2. QUESTION:
   Does anyone care how their Presidential candidate has voted in the Senate?
   Are you looking at the Senate record to see how each candidate has voted?
   Is it important how McCain voted regarding middle class tax cuts? Or if he gave relief for small businesses.
   Why do you think it is important how McCain and Obama voted as our US Senators?

   Here are some examples from the Government Senate website:

   You can see each Senator's vote. Look at McCain's vote. Compare to Obama and Biden.

   H.R. 976 (Small Business Tax Relief Act of 2007 )
   Measure Title: A bill to amend the Internal Revenue Code of 1986 to provide tax relief for small businesses, and for other purposes.

   http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=00084

   S.Amdt. 477 to S.Con.Res. 21
   Statement of Purpose: To provide for a budget point of order against legislation that increases income taxes on taxpayers, including hard-working middle-income families, entrepreneurs, and college students.

   http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=00084

   This should help you decide who you should vote for.

   Senator McCain on earmarks:

   http://mccain.senate.gov/public/index.cfm?FuseAction=PressOffice.PressReleases&ContentRecord_id=adc47f16-025f-e5d2-bce5-67594c5e5372&Region_id=&Issue_id=1172f761-a830-4020-ae1b-7ec3db088fc9

3. QUESTION:
   Who exactly does the new tax relief apply to?
   Does anybody know who this new tax relief package applies to? I read the new tax relief will give MOST tax payers. But it didn't say all. ???
   OK, I'm seeming to not get answers I'm looking for. What I mean is, what about those who didn't even make 00? I already know if you made a lot of money you get a bigger tax relief check. Does this mean anybody that's only made under 00 a year don't get ANY MONEY BACK FROM THE TAX RELIEF?

   • ANSWER:
     I have to take a "hit" at the guy complaining about the tax relief.

     Okay, its like this. Im self employed. Every year I have to pay an increasing "self employment" tax. That is SS and Medicare. I currently pay over 15% of my income into that garbage. That is 15% that every year increases. Money that I will NEVER see! Money that if saved for my retirement, could make me quite comfortable. Money that could pass onto my heirs. (SS and medicare will dry up long before Im 65)

     Then, after paying that crap, I have to pay an additional almost 30% for FICA (federal income). So that is almost 1/2 of every dollar I make.

     If you are complaining about the "rich" lets look at the last tax cuts that were done. The fact is the treasury had more money come in AFTER the tax cuts! Let people have their money and they spend it. They buy things and people work. Companies profit and and reinvest. The government takes in more money.

     The fact is that if you give a poor guy 0 he buys a TV. (even though he paid [FAQ-ANSWER] in taxes). You give a rich guy ,000 back and he hires people and reinvests in his business. (he paid 0,000 in taxes).

     So what does this all mean? That explains why the rich get richer. They KNOW what to do with money. The poor guy does not.

     Written by a small business owner. (Dont call me rich. I cut grass) but I aint stooopid!

4. QUESTION:
   Will I as a small business owner be forced to provide health insurance for my employees if Obamacare is passed?
   ?

   I have 3 employees and myself. What are the rules? I can barely afford to keep them the way it is but I am doing my best and they appreciate it because they can't find a job anywhere right now. I can also barely afford Work comp that is required of me...So, which is better, no job and business or giving me and other small business owners breaks and tax relief and workers comp relief ? TELL ME?

5. QUESTION:
   I need to find a good safe tax relief company?
   We owe about 30,000 in taxes and we were told that there are tax relief places out there that can help us settle for less. My problem is there is so many places and I dont know who to use and I don't want to get ripped off. Has anyone used these place and know a good one?

   • ANSWER:
     Don't use JK Harris. They have been sued by 15 states.
     The ads are not accurate. The IRS only accepts about 20% of the Offers in Compromise.
     You can call H&R Block and they can assigned an Enrolled Agent who can represent you to the IRS.
     In fact any CPA is also allowed to represent clients to the IRS.
     The whole "tax relief" business is a scam. Places like JK Harris charge you around 00 and then they don't do anything

     Please see this article.
     http://www.consumeraffairs.com/news04/2009/04/tx_jk_harris.html

     You may have to work some kind of long term monthly payment plan.
     Please don't get ripped off by the tax settlement businesses.

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