Some tax questions for the self employed..

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  • bronco67
    Too lazy to set a custom title
    • Dec 2006
    • 29026
    #1

    Some tax questions for the self employed..

    This is my first entire year as a free agent, and I'm aware of deductions I need to make -- such as computers I've purchased, home office space, etc. If I feel like I may have a tax liability, can I just spend that money on more business related equipment or software, instead of giving it to the government?

    Please excuse me if this sounds dumb, but I've never been in this situation until now -- and it's the end of the year. If I splurge on another computer system for my network(before dec 31), that means the IRS won't get that income, correct?

    Thanks in advance for any help...
    Tags: None
    • xmas13
      Confirmed User
      • Dec 2004
      • 5176
      #2
      A tip. Ask a US certified accountant not a GFYer living in South America.
      ICQ 557504926

        Comment

        • Sosa
          In Tushy Land
          • Oct 2002
          • 40149
          #3
          Def get yourself an accountant. Find someone that works with self employed people and has recommendations etc for their work.

            Comment

            • L-Pink
              working on my tan
              • Mar 2005
              • 39151
              #4
              You need an accountant. But to answer your question, NO you can't buy a new computer to avoid paying taxes on the amount spent. What you can do is depreciate it's cost over a set period of years. Office supplies not office equipment may be expensed.

                Comment

                • SkeetSkeet
                  Confirmed User
                  • Oct 2005
                  • 5404
                  #5
                  yup l-pink is right on that one ... go buy 10,000 pens

                  ICQ 283633188

                    Comment

                    • SkeetSkeet
                      Confirmed User
                      • Oct 2005
                      • 5404
                      #6
                      yup l-pink is right on that one ... go buy 10,000 pens

                      ICQ 283633188

                        Comment

                        • ThreeXes
                          Confirmed User
                          • Aug 2006
                          • 301
                          #7
                          Hurry and retain a CPA for the remainder of this year. Then early in the new year retain a CPA / Tax Avoidance Specialist for planning your coming year with minimal tax liabilities!

                            Comment

                            • GatorB
                              The Demon & 12clicks
                              • Oct 2001
                              • 18208
                              #8
                              Originally posted by bronco67
                              This is my first entire year as a free agent, and I'm aware of deductions I need to make -- such as computers I've purchased, home office space, etc. If I feel like I may have a tax liability, can I just spend that money on more business related equipment or software, instead of giving it to the government?

                              Please excuse me if this sounds dumb, but I've never been in this situation until now -- and it's the end of the year. If I splurge on another computer system for my network(before dec 31), that means the IRS won't get that income, correct?

                              Thanks in advance for any help...
                              Are you looking to deliberately avoid paying ANY taxes? You can't do that. Pay your share and quit whining. By the way if you have health insurance you can deduct your premiums, but I'm sure the CPA you are about to hire will tell you all about that.

                              Oh and that computer you bought for your "home office" unless you use if for business ONLY you can't take a full deduction. Sure you can lie if you don't. doubtful the IRS will ever raid your house and confiscate your computer to tell otherwise.

                                Comment

                                • bronco67
                                  Too lazy to set a custom title
                                  • Dec 2006
                                  • 29026
                                  #9
                                  Originally posted by GatorB
                                  Are you looking to deliberately avoid paying ANY taxes? You can't do that. Pay your share and quit whining. By the way if you have health insurance you can deduct your premiums, but I'm sure the CPA you are about to hire will tell you all about that.

                                  Oh and that computer you bought for your "home office" unless you use if for business ONLY you can't take a full deduction. Sure you can lie if you don't. doubtful the IRS will ever raid your house and confiscate your computer to tell otherwise.
                                  I'm not trying to totally avoid paying, I know that's not going to happen. I'm trying to justify buying another computer, and if it makes my tax liability lower, then I'll go for it.

                                  I have 3 computers. All 3 are used for my animation business, with the main one partially used for the household also.

                                  I have access to a CPA, but I won't be talking to him until mid January.

                                  Thanks for the advice.

                                    Comment

                                    • tony299
                                      lurker
                                      • Aug 2002
                                      • 57021
                                      #10
                                      Talk to an accountant, you dont have to say you do adult say you do internet marketing. Have you incorporated?

                                        Comment

                                        • *Fred*
                                          Registered User
                                          • Jul 2007
                                          • 69
                                          #11
                                          You should check out the Section 179 Deduction, it allows you (in some cases) to fully deduct some depreciable assets.

                                            Comment

                                            • minusonebit
                                              So Fucking Banned
                                              • Feb 2006
                                              • 7391
                                              #12
                                              Originally posted by bronco67
                                              This is my first entire year as a free agent, and I'm aware of deductions I need to make -- such as computers I've purchased, home office space, etc. If I feel like I may have a tax liability, can I just spend that money on more business related equipment or software, instead of giving it to the government?

                                              Please excuse me if this sounds dumb, but I've never been in this situation until now -- and it's the end of the year. If I splurge on another computer system for my network(before dec 31), that means the IRS won't get that income, correct?

                                              Thanks in advance for any help...
                                              Here, let me help: this is what you need. You don't need tax deductions if you don't have any taxable income.

                                                Comment

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