Im about to graduate college and start my own buisness I need some help. This is going to be a joint partnership, me and my brother.
I need advice on write offs. We are starting a roofing buisness and I know what items are write offs, however I was always told that the more you buy in practicle terms you save more.
I assumed, now that I think about it very foolishly, that if you owed say 10,000 and bought 5000 in items that qualify that you could save the 5000 and only pay the remainder to the irs. This is way off, correct?
Does it work like if you were to make 55000 and spent 5000 on legitmate items then you only have to pay taxes on a income of 50,000? and then that amount would depend on your tax bracket? I think I got it....
Also how does charity donations work. I mean I dont want to donate just to write it off. I want to actually start my own non profit childhood cancer fund, was wondering how much I could donate to a charity and if thats deducted like the items are.
Txs
2007-04-19
18:26:37
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5 answers
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asked by
The Unknown Awaits
3
in
United States