LLC Tax Deduction Question

[Krav69]

I'm working from home here in the next couple of months, starting my own business, all under an LLC.

I'm aware of the slew of tax deductions, but have a question about a few.

Since I'm working from home, is my mortgage and HOA fee tax deductible? If so, to what extent?

Also, if you are a CPA in the Denver, Colorado area, feel free to contact and let's do business.

 

[High Binder]

Re: LLC Tax Deduction Question

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Krav69</div><div class="ubbcode-body">I'm working from home here in the next couple of months, starting my own business, all under an LLC.

I'm aware of the slew of tax deductions, but have a question about a few.

Since I'm working from home, is my mortgage and HOA fee tax deductible? If so, to what extent?

Also, if you are a CPA in the Denver, Colorado area, feel free to contact and let's do business. </div></div>

I have an LLC here in CO. and no your home is not typically a tax deduction, you'd have to be zoned for that and a whole slew of other shit (I tried for that when I first started an LLC too). Things like office supplies and such can be. Ultimately you should talk to the CPA you had set up your LLC (you did have a CPA set up your LLC, right?).

 

[Krav69]

Re: LLC Tax Deduction Question

High Binder--haven't got the LLC yet, was going to get it here in the next few weeks.

I had originally thought to set the LLC up on the State and Federal websites like my friend did, but you seem to imply that setting the LLC up through a CPA would be advantageous. Why so?

 

[ZLBubba]

Re: LLC Tax Deduction Question

Krav, I do most of my work on 1099 consulting status. Find a respected CPA and hire her before you get too far down the path. If nothing else, CPAs with larger firms have legal teams that will back up their CPAs counsel, decisions, and books. That means you're protected if something is not correct in your taxes. I'd highly recommend going this route.

 

[High Binder]

Re: LLC Tax Deduction Question

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Krav69</div><div class="ubbcode-body">High Binder--haven't got the LLC yet, was going to get it here in the next few weeks.

I had originally thought to set the LLC up on the State and Federal websites like my friend did, but you seem to imply that setting the LLC up through a CPA would be advantageous. Why so?


</div></div>

Well, her in CO you can set up your LLC for $50 through the .gov website and if your planning on doing some sort of retail/resale the same website will help with the tax exempt stuff and then get the federal ID through the the fed website for cheap. So you can do it on your own pretty easy and cheap but that leaves you in a position where your needing to research every little question that comes up about the process. Whereas if you hire a CPA to set it up for you, you instantly have a resource to answer all the questions you might have. Plus the CPA is going to cover your ass in terms of closing loop-holes that you didn't know about (based on the type of business your starting). I guess it depends on what type and how much business you're planning on doing and how much potential liability you might have or in other words, how likely it is that somebody may sue you.

 

[bachelorjack]

Re: LLC Tax Deduction Question

Some things are easier to get right the first time instead of having to fix down the road.

This is one of those things....

 

[strat81]

Re: LLC Tax Deduction Question

http://www.irs.gov/taxtopics/tc509.html

For Schedule C taxpayers, business use of home is a red flag. When I worked in public accounting, my boss would never allow us to use it on a client's return. The amount of tax savings was small compared to the headache it could cause.

You may or may not file Schedule C depending on the nature of your LLC.

Consult a CPA or Enrolled Agent (EA) in your state.

 

[Krav69]

Re: LLC Tax Deduction Question

Thanks for the responses guys!!

I'll definately be getting a CPA--prolly not wise to be cheap (which I am, I'm sure you've noticed) in this case.

 

[John L]

Re: LLC Tax Deduction Question

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: strat81</div><div class="ubbcode-body"> http://www.irs.gov/taxtopics/tc509.html

For Schedule C taxpayers, business use of home is a red flag.

Consult a CPA or Enrolled Agent (EA) in your state. </div></div>

This + 1000. My CPA did all the work setting my Sub S up, cost me $200.00

His first words of advice were to stay far, far away from the home office deduction. If your going to start a business you will need the help of a good CPA more than you know.

 

[ZLBubba]

Re: LLC Tax Deduction Question

This is one of the first unanimous threads I've seen on the Hide. OP, take note!

 

[strat81]

Re: LLC Tax Deduction Question

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: ZLBubba</div><div class="ubbcode-body"> If your going to start a business you will need the help of a good CPA more than you know. </div></div>

At the very least, you'll need the help of a bookkeeper and/or tax preparer.

The IRS and state tax departments have zero tolerance for shenanigans of any type. Mistakes, late filings, and similar BS is answered with penalties and interest. Do NOT let yourself fall behind in submitting tax returns of any type (payroll, property, sales, income, etc.). If you do find yourself in a mess, it'll be even more expensive for a CPA or EA to fix it.

 

[High Binder]

Re: LLC Tax Deduction Question

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: ZLBubba</div><div class="ubbcode-body">This is one of the first unanimous threads I've seen on the Hide. OP, take note! </div></div>\


^^ True that!

On a side note: Beware fellow owners, in 100 days our tax rates are going SKY HIGH! Plan accordingly.