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Originally Posted by WiredGuy
Well, there's quite a few ways you can make the things you wrote legitimate business expenses. And even though you probably filed already, you can still file an ammendment to get some money back. Here's a few suggestions based on what you said you couldn't claim...
You can still write off up to 50% of your rent as a home office. This should be no problem to justify.
Sure you can. Just because icq is your primary form of contact, you also need a phone. I talk all the time over icq/msn and get maybe 2-3 calls per month. You need a phone line in order to talk to people like your bank, your accountant, etc. This is a business expense. Again, 50% should be fine.
Doesn't matter. You go to the bank to make deposits, you go to your accountants office. You go to a mailbox, etc. etc. You need transportation to do this. I bought a company car brand new and wrote off 70% of it (keep detailed records of milage and at year end figure out what percentage was business and what was personal and expense the business portion). I was federally audited too (2 year long fight) and the government let me write that expense off no problem.
What kind of travel expenses do you have? Did you ever go to meet someone that was business related? Even if no money was transacted between the two parties, its still possible to expense it, like if you went to discuss with someone something that was work related that could benefit you, that's still an expense thats legit.
Hope this helps.
WG
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Thanks a lot for the detailed reply WiredGuy, that was very helpful. Basically it was my fault too because I waited until the very last minute (last filing day which is today actually) so I did not have time to do it the way I would have liked, plus a lot of the accountants were too busy already and wouldn't take me, so I went to a place that wasn't so good.
I am stupid, I should have written off the phone, I don't know why I didn't. I was just paranoid of the IRS and wanted to do everything exactly by the book, since honestly I don't call my accountant or bank very often. And I also want to get a new car in the near future so that will help if I can only write a small percentage off, and you are right; I do drive to the po box and the bank ALL the time.
I am glad I paid quarterly for this year, (2005). For last year I had to pay all at once because I did not pay quarterly and it's a big hit (for me, since I am not rich) to take all at once. So today I had to pay for last years, plus for this years first quarter.
Unfortunately I had no travel expenses at all for last year. For this year perhaps small ones for personal reasons but I can't say that I travel to meet anyone for business.