Tax Question!
 

How much do you typically expense per year from what you actually buy? For instance, all my income is from "self employment" and 1099's but going through using TurboTax I'm a bit nervous I'm throwing up a red flag for AUDIT ME!

I have everything itemized from bank/charge online receipts (i.e. date, store, total) and anything I paid cash or can't find the receipt, I didn't include. These are from BofA checking accounts and Amex charge card. I have a lot in the "supplies" category from shopping at Walmart, Target, etc.

So do you use 100% of what you buy or do you estimate about 50% or so?

Personally for me, I'm not using 100%. An accountant that I talked to a few weeks ago said use everything that you have a receipt (electronic) for if you get audited, you can show them what you bought. However, in the case that I do, I don't want to show the auditor "yeah, see this total of $5,000 I spent at Target last year, it was all for expenses, but I dont have exactly what it is" :1orglaugh

If it's for your business you expense 100% of it assuming you have the receipt. If it's not, then don't expense it.

I wouldn't expense something I don't have an itemized receipt for, otherwise if you get audited you can say goodbye to that write-off.

Don't use TurboTax, get an accountant to actually complete your return. It's not much money and well worth it. A good one will advise you to make the right choices to try to avoid setting off red flags.

fuck tax:)