Jun 172015
 
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Self-employed individuals, including home based business owners, may deduct expenses related to their business not afforded to other taxpayers.  However, there is a unique set of business tax rules with which self-employed and home based business owners must comply.  If the taxpayer is a sole proprietor or single member LLC, the income and expenses of their business are reported on Schedule C of Form 1040.

Self-employed persons:

  • Make estimated tax payments
  • Pay self-employment tax (Social Security and Medicare)
  • Include income not subject to withholding when calculating estimated tax payments
  • Deduct ordinary and necessary expenses of running a business

For a complete discussion of business taxes for the self-employed, view the video at the following link.

Business Taxes for The Self-Employed

For more information related to business taxes for the self-employed or an opportunity to own your own home based business, complete the information below and I’ll be glad to send you more information.

 

Disclosure of Material Connection: Some of the links on this blog are “affiliate links.” This means if you click on the link and purchase the item, I might receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

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Oct 302013
 
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This is an excellent article explaining why you should keep business and personal expenses separate.

In addition, the cost of tax preparation is greatly reduced if your records are in good order. Tax preparers are being held to higher standards (much needed in the industry) and must spend more time to ensure that taxpayer records substantiate the information reported on the tax return.

Why You Should Keep Business and Personal Expenses Separate | Entrepreneur.com.

It is quite easy to set up a simple system to maintain records for tax purposes. Feel free to contact me if you need help with setting up a system so that you can keep your business and personal expenses separate.

Disclosure of Material Connection: Some of the links on this blog are “affiliate links.” This means if you click on the link and purchase the item, I might receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

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