I have a small buisness where i do portraits for people. Can i claim all the art supplies I buy for the buisness on my taxes and do i get that money back on my return. If not what can I claim on my taxes as part of my buisness. And what do I have to have to claim Them. I have all the reciepts of everything i've purchased so far. Thanks for the help!
2006-12-27 01:09:15 · 4 answers · asked by Christopher Robin 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
For a business you report your income and expenses on the Federal Sch C or C-ez. You need your total income from the business and you break down your expenses under that. Supplies, advertising, yaddah. If you have a studio or office in your home you can take the square footage of such on a form 8829 and use it to write off a percentage portion of rent, mortgage int, utilities, repairs, insurance, etc. If your work area is 20% of your home's size you can take 20% of the above expenses and deduct them on your Sch C. If you have all your receipts start adding them up. If you have any specific questions send them to me and I will use my 36 years of tax preparation experience to answer them for you. Regards, paul
2006-12-27 02:33:07 · answer #1 · answered by acmeraven 7 · 0⤊ 0⤋
Wow CR that's a lot of questions.
1) You are a sole proprietor (small business owner)
2) See www.IRS.gov and click on business.
3) You will file form Schedule C w/your US tax return.
On that form you report your earnings (the $ folks paid for the pretty pix) and deduct your carefully documented expenses. if you have a positive amount after deducting the expense amount from the income amount you will be allowed to pay tax on the income. You will also file form Schedule SE if the positive income is over $400.
4)they have lots of free (?) tax help and booklets you can download or order them on line to be mailed out to you, also free (?).
5) remember to keep records of your mileage if you work at different locations. Your bank account fees, education you take, refunds or boo boos for your work. Any space you use at home should be documented especially if you have a studio there where your victims...I mean customers come.
Good luck with your business. Don't cut off your ear.
2006-12-27 10:29:23 · answer #2 · answered by Ellie 2 · 0⤊ 0⤋
Easy, its either you take it to professional tax preparer or do it your self. YOu just need to itemized everything you have purchased if it is part of your expenses. You can get some of it back.
2006-12-27 01:25:13 · answer #3 · answered by ladybug 2 · 0⤊ 0⤋
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2006-12-27 01:11:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋