My boyfriend is saying that when a small business "writes off" tools or clothes for 'work' they will get that full amount back at the end of the year. I am saying that they will receive a percentage of the taxes paid at the end of the year. Is either one of us correct and is there a website that states the rules of "small business write off"?
2007-08-22 14:10:38 · 3 answers · asked by jenniejay82 1 in Business & Finance ➔ Small Business
The IRS website is the ultimate authority.You can look up items and print off forms.You are allowed to deduct anything used to run a business,within a certain percentage.A "write off" is considered "Profit or loss from a business;deductions".You have to use the long form and supply proof.The entire amount is detectably,but you have to show receipts,when you file.
2007-08-22 14:26:19 · answer #1 · answered by gary s 6 · 0⤊ 0⤋
Both of you are wrong. I have operated my own small business for over 20 years, and I can tell you from experience that you need an accountant to help you with this. No matter what state you live in, though, I can promise you that there is no such thing as a "write off." You will pay taxes on everything you earn, just like anyone else, even you will have deductions. The tax laws are very complicated, and even though you can get on the government's website for some info, the bottom line is you need an accountant. Bear in mind that if you don't pay your taxes appropriately and completely, the IRS will assess you with penalties and interest, and they can freeze and/or seize your personal assets and bank accounts. Get professional help from a CPA. Life is hard enough without having trouble with the IRS.
2007-08-22 14:24:17 · answer #2 · answered by No Shortage 7 · 1⤊ 0⤋
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2016-10-16 12:55:42 · answer #3 · answered by ? 4 · 0⤊ 0⤋