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Question about Taxes and Home Business

Discussion in 'Making Money' started by moneymachine01, Apr 4, 2011.

  1. moneymachine01

    moneymachine01 Regular Member

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    I'm a bit of a noob but I'm curious how some of you handle your taxes. I have a real job but am doing things online to make some extra cash. I'm thinking about starting a home business so I can deduct any business expenses and deduct part of my mortgage etc. However I have a secure job but in case I was to get laid off could I still claim unemployment if have a home business ?

    If I don't have the home business then I would lose all those deductions. Consider if it costs me $200 to make $300 then I'd probably be losing money after taxes.

    Just wondering what everyone is doing? Thx a lot in advance.
     
  2. everythingred

    everythingred Jr. VIP Jr. VIP Premium Member

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    You should consult an accountant since a lot of state/province laws vary. Consultations are usually free because they want your business.
     
  3. Michaelh76

    Michaelh76 Newbie

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    Occupation:
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    You have to look at the structure, and the Tax Laws. In the US the Business can not pay part of the Mortgage. It can pay for use of the space if you have a real office that the IRS will support.

    This is not a simple process - and the first step would be to create an LLC
    in some State and the get a separate Tax id and create a business bank account.

    If you want to do unemployment then you can not take a paycheck from the Business you can distribute profits.

    So start doing your research on how you want to do things and read and understand the laws and rules - or go find a good accountant or good lawyer.
     
  4. synfig

    synfig Regular Member

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    I don't have regular taxable income but still i'm learning to maintain a spreadsheet and personal finance software (Microsoft money plus sunset deluxe). You should write every expense in spreadsheet and software without fail, this will help when you fill up tax forms or consult tax authority. Another thing, paypal, alertpay or other online payment reciepts should be in print form in your expense file. These are some of the habits will help you during taxation. Still i'm few bucks away from taxation, so let's what future is ahead of me.
     
  5. christineexox

    christineexox Newbie

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    i receive payments to my paypal acc , money goes straight into an offshore bank acc. Fuck taxes
     
  6. moneymachine01

    moneymachine01 Regular Member

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    Well that'd be sweet but places like Clickbank, CPA networks etc. ask you for your SS number. :rolleyes: