Some tax questions for the self employed.. - GoFuckYourself.com

bronco67 · 12-18-2007, 07:11 AM

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...

xmas13 · 12-18-2007, 07:16 AM

A tip. Ask a US certified accountant not a GFYer living in South America.

Sosa · 12-18-2007, 07:24 AM

Def get yourself an accountant. Find someone that works with self employed people and has recommendations etc for their work.

L-Pink · 12-18-2007, 07:33 AM

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.

SkeetSkeet · 12-18-2007, 08:09 AM

yup l-pink is right on that one ... go buy 10,000 pens

SkeetSkeet · 12-18-2007, 08:11 AM

yup l-pink is right on that one ... go buy 10,000 pens

ThreeXes · 12-18-2007, 08:28 AM

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!

GatorB · 12-18-2007, 09:48 AM

Quote:

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.

bronco67 · 12-18-2007, 09:53 AM

Quote:

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.

tony286 · 12-18-2007, 09:55 AM

Talk to an accountant, you dont have to say you do adult say you do internet marketing. Have you incorporated?

*Fred* · 12-18-2007, 09:59 AM

You should check out the Section 179 Deduction, it allows you (in some cases) to fully deduct some depreciable assets.

minusonebit · 12-18-2007, 10:02 AM

Quote:

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.

12-18-2007, 07:11 AM	#1
bronco67 Too lazy to set a custom title Join Date: Dec 2006 Posts: 29,032	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...

12-18-2007, 07:16 AM	#2
xmas13 Confirmed User Join Date: Dec 2004 Location: GFY Posts: 5,176	A tip. Ask a US certified accountant not a GFYer living in South America. __________________ ICQ 557504926

12-18-2007, 08:09 AM	#5
SkeetSkeet Confirmed User Join Date: Oct 2005 Location: StarlightBucks ! Posts: 5,404	yup l-pink is right on that one ... go buy 10,000 pens __________________ ICQ 283633188

12-18-2007, 08:11 AM	#6
SkeetSkeet Confirmed User Join Date: Oct 2005 Location: StarlightBucks ! Posts: 5,404	yup l-pink is right on that one ... go buy 10,000 pens __________________ ICQ 283633188

12-18-2007, 07:24 AM	#3
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	Def get yourself an accountant. Find someone that works with self employed people and has recommendations etc for their work.

12-18-2007, 07:33 AM	#4
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	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.

12-18-2007, 08:28 AM	#7
ThreeXes Confirmed User Join Date: Aug 2006 Location: Half way to HELL! Posts: 301	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!

12-18-2007, 09:55 AM	#10
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	Talk to an accountant, you dont have to say you do adult say you do internet marketing. Have you incorporated?

12-18-2007, 09:59 AM	#11
Fred Registered User Join Date: Jul 2007 Posts: 69	You should check out the Section 179 Deduction, it allows you (in some cases) to fully deduct some depreciable assets.