Exactly what can I write-off on my business taxes?

Question

I am a sole-proprietor. I obtained my Tax ID number about six years ago, but this is the first year that I have actually done any business. I actually started in April of 2007. I have made a little over $200 so far this year. What exactly can I write-off on my business taxes? Please be very specific.

My husband is going to help me with certain tasks in my business, so he is somewhat like my business partner. If he and I go out to dinner to discuss the business plan, marketing and advertising ideas, can I write that off? If I buy a new desk for my home office can I write that off. Are there any limitations to what I can actually buy?

If I have a business gas card and use it for my personal gas, is that illegal? I only plan to write-off what I used for business expenses.

Answer 1

Generally common sense applies:
Buying a desk for a home office, yes you can write that off.
Taking your husband out to dinner, no matter what you discuss, not gonna fly.
Buying personal gas on a business card.. definitely not. You can deduct a certain amount per BUSINESS mile if you read the tax instructions.
You might want to go to H&R block if you don't have a good grasp of what is reasonable.

Answer 2

Get an accountant. You can write off business expenses like the gas to drive to customer sites after the first site since that is considered commuting. Keep a diary of you miles. Meals for business are deductible but not just with your partner only when you have customers and they aren't fully deductible.
Home office is only deductible if it is exclusive use and you see customers there. You can't just put a desk the corner of the guest room and write off the room, If you only use the desk for business you might be able to depreciate it.
Writing off more expenses than you have income will be looked at to be sure it isn't hobby income not business income.
Some businesses are more hobby than business so you need to prove you are trying to profit from it.

Answer 3

it depend on what kind of bussiness?yes to your first 2 ? call jackson hewitt they will fax you a sheet 4 what you can write off.