Darwin Posted October 8, 2005 Share Posted October 8, 2005 When I file my personal income tax for the year, is there a place to include income from my business or do I file that separately? Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted October 8, 2005 Share Posted October 8, 2005 If you are a sole proprietorship, you would file schedule C in addition to your regular return. If your net earnings exceed $400, you also need to file schedule SE. If you have a home office and qualify for the home office deduction, you'll need to file form 8829 to claim it. Quote Link to comment Share on other sites More sharing options...
7Angela7 Posted October 8, 2005 Share Posted October 8, 2005 Thanks for your input suds. I needed to know this question also. Quote Link to comment Share on other sites More sharing options...
Darwin Posted October 9, 2005 Author Share Posted October 9, 2005 What is the home office deduction? Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted October 9, 2005 Share Posted October 9, 2005 If one room or section of your home is used solely for your business, then you may deduct a pro-rated portion of your rent or mortgage and property tax. Quote Link to comment Share on other sites More sharing options...
Darwin Posted October 9, 2005 Author Share Posted October 9, 2005 So, if it is ...like my kitchen where I also cook meals that are not business related, then it is not an office deduction? I do have a small room where I store everything...does that count? Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted October 9, 2005 Share Posted October 9, 2005 The small room would count. As for the kitchen, I am not sure...I think it would depend on whether a section of it (e.g. cupboards) is used exclusively to store your supplies. As I am no tax expert, I'd suggest you obtain copies of all these forms I mentioned. You can order them through the IRS website (look for "forms and publications by mail" or you can print them out but I think it's simpler just to have a copy sent to you). You'll be getting the forms for the 2004 tax year as this year's won't be ready yet, but looking through the instructions will be helpful as the questions don't change very much from year to year. The instructions would tell you what you are or are not eligible to deduct. Also order publication 334 (it's a free booklet called "tax guide for small businesses") as it provides further information which you may find helpful. Quote Link to comment Share on other sites More sharing options...
Darwin Posted October 10, 2005 Author Share Posted October 10, 2005 Thanks y'all are so helpful. I have no fricken clue what I am doing most of the time. Quote Link to comment Share on other sites More sharing options...
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