Question for CPA... tax deductions

[Vagabond]

I'm in the process of setting up a intro meeting with a CPA but I have a couple questions in the meantime so hopefully someone can help me out...

In order to claim expenses as business expenses, a new computer, graphic design, other start-up costs etc.. do I need to have my LLC set up and buy it with the corporate card or can I pay for it with my personal cash for now and then in a few weeks/month when my LLC is set up, have the LLC reimburse me for it at that point and claim it as a deduction?

I know for LLC's everything gets passed through to your personal income but can you only claim expenses you incur AFTER the date you legally formed your LLC?

[Drewkerr]

LLC business is pass through for taxes. Basically you only have to pay taxes on the money you earn once unlike a corporation.

The CPA will instruct you on how to best write off the start up costs. Unless it has changed you can write off the start up costs either all at once or you can amortize it over the first 5 years of the startup.

Just save all your invoices and reciepts. It doesn't matter if you pay for it yourself or out of your business.

Drew

[Vagabond]

LLC business is pass through for taxes. Basically you only have to pay taxes on the money you earn once unlike a corporation.

The CPA will instruct you on how to best write off the start up costs. Unless it has changed you can write off the start up costs either all at once or you can amortize it over the first 5 years of the startup.

Just save all your invoices and reciepts. It doesn't matter if you pay for it yourself or out of your business.

Drew


Oh ok great... thanks!


I wasnt sure if the money had to technically come from the business accounts or atleast legally have it set up when the cost was incurred.

[cheez avenger]

Remember to take pictures of your major equipment purchases used in a home office. In fact, take pictures of the entire home office. You can use them as deductions, and in case you ever get audited (knock on wood) you'll have the proof in the pics.


-cheez avenger

[Marcie]

Remember to take pictures of your major equipment purchases used in a home office. In fact, take pictures of the entire home office. You can use them as deductions, and in case you ever get audited (knock on wood) you'll have the proof in the pics.


-cheez avenger

That reminds me, mom was audited (granted it was in the 80s) and she said they told her if there is anything in your home office that doesn't belong there (say, a litter box) - they could disqualify it as a home office...:mad:

HTH!

[cheez avenger]

That reminds me, mom was audited (granted it was in the 80s) and she said they told her if there is anything in your home office that doesn't belong there (say, a litter box) - they could disqualify it as a home office...:mad:

HTH!



Right, so if you sleep in your office, make sure you don't take a picture of the bed. In fact make sure the office is in a spare room all to itself.


-cheez avenger

[Vagabond]

Right, so if you sleep in your office, make sure you don't take a picture of the bed. In fact make sure the office is in a spare room all to itself.


-cheez avenger

Hmmm, i was told that it didnt need to be a spare room you just have to calculate the area that is being used for the home office. This way if someone was using a studio apt as a home office they still could as long as they said that area is 30% of the apt.

I'm planning on meeting with a CPA soon anyways so I can report back what he says.

[Marcie]

That makes sense. I think what my mom said is some auditors can be, um, mean and take the guidelines to extremes, kwim? But here's to hoping you never get audited :)

[Vagabond]

That makes sense. I think what my mom said is some auditors can be, um, mean and take the guidelines to extremes, kwim? But here's to hoping you never get audited :)


cheers to that :)

[frank.cabrera@gmail.com]

is it better to set up the LLC or a S corporation?