write offs

[bella soy]

hi guys for those of you that have an established business. I was wondering about tax time. i am a sole proprietor, live in PA

Here are my questions

1. can you write off shipping ?

2. when i look at recept and write down my total purchase cost, should i include the sales tax?

3. what percent of your cable, cell, and electric can you write off every month? (i have cable internet and use my home as an office)

4. Can you write off all your supplies that you purchase to make candles?

Hope im not being a pain. I just want to make sure that Im keeping good records.

[Ingrid]

My suggestion would be to contact an accountant. They can best guide you with your business deductions and help you save the most money in taxes, after all that is what they do.

Ingrid

[magsglass]

Hi! Without knowing your exact situation, the answer to your questions is: It depends.

The IRS has some publications that will help answer your questions.

Try: Pub.334, Tax Guide for Small Business. I recommend starting with this one, as it touches on so many aspects of business. It also points you in the direction of other publications to answer more specific questions. You can download the documents at their website http://www.irs.gov :smiley2:

Also the PA dept. of Revenue (not sure what they call it in your state) would have documents for you re: PA tax laws. They probably have a website, too.

[bella soy]

thanks for the link! looks like I have alot of reading to do

[iloga]

By all means, spend some time at the www.irs.gov site.

Did you register for a PA Resellers Lic and file PA sales tax returns? If not, go to www.paopen4business.gov If so, visit that site for links to answer many of your state tax questions.

In addition to mega hours researching the state and federal publications, consider a tax course. H&R Block offers one every fall.

Although extremely time-consuming, you won't regret the ability to provide complete, accurate info and records when you meet with your accountant/tax professional. And, in my opinion, accurately pricing your products requires accurate cost info (direct & indirect).

[sudsnwicks]

In addition to Pub 334, you can also take a look at Pub 535, Business Expenses. Both are downloadable from the IRS website, but I found it easier to send for the paper copy.

[Rebecca]

I would suggest going to an accountant. I live in MI and have been having one do my taxes for about years now. It's a huge relief for him to do it too. I just hand everything over along with the fee and it's done in about 2 days and I get my money in about a week 1/2 from handing over the papers. The theory is too that you are less likely to get audited if you have a licensed account do your taxes and for me it's a peace of mind that I don't have to sit and wonder if I screwed something up cause I don't know all the ins and outs of taxes.

I don't use H&R or any of those places. Went to one once and they didn't even know how to read my husband W-2 form. :rolleyes2

[Georgia]

You could also go to an office supply store and pick up a DOME Simplified Weekly Bookkeeping Record book. It has room to list all of your weekly expenses and incomes with totals year to date. I found it really helped to keep my records organized throughout the year.