Hi,
I have my own online business which makes me good money. The problem is that i don't have expenses since everything is online, what should i do to lower my tax bill at the end of the year?
And by the way, i don't own a home and the car i have doesn't pay monthly because i bought it cash.
The reason i don't own a home is because at this moment i don't want one.
2007-08-15 12:30:52 · 4 answers · asked by El Yankee 2 in Business & Finance ➔ Personal Finance
Not much you can do in your situation except make less money.
Items that are deductible as a result of your business could include:
Computer
Internet access costs
Paper and toner/ink
Some limited phone usage
Software costs
Advertising costs
Business cards and other give away stuff.
Non business related items that could be deductible include:
Medical expenses
Dependents (elderly parents, children, disabled adult children)
Charitable contributions
Cost to prepare taxes
Gambling losses
Loss on sale of stock, etc...
oh, one more thing:
Put money into an IRA.
But the catch is that the expenses need to be higher then your standard deduction before itemizing your deductions is justified.
To sum it up, you have to pay a percentage of your income in taxes. Deductions only reduce the amount of money you earn that is considered taxable.
2007-08-15 12:43:46 · answer #1 · answered by cbmttek 5 · 1⤊ 0⤋
You could donate some money to a charity in the name of the business... Charitible donations are tax deductible.
Just don't go out and buy stuff you don't need just to take the deduction.
2007-08-15 19:56:27 · answer #2 · answered by Jen G 5 · 0⤊ 0⤋
first of all be happy don't worry -- i would love to say i had to pay uncle 10 million in taxes with out any write offs -- a lot of folks who procured homes for the tax wright rite now are facing very tough times with their arm. i have not itemized is over 20 years and i am very happy each April 15th.!!!
remember we have a estimated tax due sep 15th!!!.
2007-08-15 19:41:27 · answer #3 · answered by mister ed 7 · 0⤊ 0⤋
You should start an IRA and max that out .
Other than that , read thru their deduction forms and info booklets on what is deductible (and be prepared to show receipts and other proof )
Congrats on the business .
http://www.irs.gov/
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2007-08-15 19:45:54 · answer #4 · answered by kate 7 · 1⤊ 0⤋