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Learning How To Make My Tax Payment Lower - Is This OK?

K

Kenji4861

Banned
I usually just pay the raw amount for tax payments. I run a website from home and the money I'm paid.. at least 35% goes back to federal / state tax which hurts.

Someone said I can deduct it by mentioning things I used to run the business... how far can I go with this? I mean.. I use DSL, computer, phone, printer, camera, electricity, forum licensing... can I add the cost of all of those on the deductable?
 
Anything you spend which is 100% for business purposes, like your forum software, is deductible. Once you start trying to divide things up between your personal use and business use (like electricity) it gets complicated. You need to research the home office deduction rules. Be careful on the things you allocate between business and personal use because that's an area the IRS studies closely. They know it gets abused.

You would have a tough time trying to deduct your computer, DSL, printer, etc. if you use it for anything other than the business. It's the same reason that news anchors can't deduct what they spend on clothes - while they have to have nice clothes on the air, the clothes are not used exclusively for their job.

Deduct everything you are entitled to, but make sure you can prove everything.
 
There is a home office deduction in the tax code but it is real hard to prove that what you are deducting is used only for your business. Seek professional advice before trying it.
 
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