Post by Rukh O'Rorke on Jul 25, 2020 13:29:41 GMT -5
I did my taxes on turbo tax this year, and I had about 6k gross in Rukh, Inc (RI) income.
Turbo tax said RI qualifies for the qualified business income deduction. I would have had to upgrade the turbotax version to claim any expenses against the earnings, so I didn't.
When I started going through the tax stuff, I really wondered if the 6k was even worth it (all the work I did - stress, etc. gave up about 3 weekends plus some evenings) - but this deduction really helped out and I didn't owe any additional taxes as I thought I would.
So far this year I am expecting about 20k on the RI front. What can I do to make this efficient, or otherwise beneficial?
The work is just me and my computer - data analysis type stuff - so using electricity, space, and internet, etc. I do need a new computer as mine is overheating a lot, can't stay on more than 20 minutes without an icepack under it. But - it would be shared as my personal computer too...
Is it even worth it to claim expenses? What would be the pros and cons.
And if it is a good idea to claim expense - thoughts on how to quantify, document these? I want to make sure I plan it out with plenty of time. Have a least one more project coming up this year. The new computer would be a major one. I could possibly buy two - and have one be only for my RI and research/professional development type stuff. And just get a personal something or other to surf the net/youtube, etc.
Post by jerseygirl on Aug 14, 2020 14:52:49 GMT -5
You can set up a SEP IRA that allows you to put much more than a regular IRA and will decrease taxes. This can be a huge savings Can you set up a home office? If you can let’s say it’s 12% of your home you can take 12% of house expenses, electricity, oil of gas, house repairs etc The 12% would decrease if you only use office for part of your work If you buy s new computer think with the recent tax bill you can deduct 100%, also any software. Cell phone used for your business? What %, advertising expenses, TurboTax for small business is great and easy to use and deductible. Also if you have business, 20% of profit isn’t taxed! Thanks to new tax code Any courses you take to help your skills are deductible