If I make 30,000 with my LLC and half of the profits go to buying a service from an international biz. can this be deductible? It will be the company that buys it.
Also, my LLC daytrades so it would be under capital gains rates.
2007-07-01 13:59:12 · 1 answers · asked by easeofdisease 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Two things.
1. If the service you purchase is a reasonable and necessary expense for the production of your income then it's deductible.
2. Daytrading income is NOT capital gains! Income from day trading is taxed as ordinary income and that can include items held for over one year. The rules on day trading are complex and unforgiving. I would STRONGLY urge you to seek professional guidance or you will be in for a very nasty surprise at tax time next year.
2007-07-02 02:51:00 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋