Posted by Craig / CA
on April 12, 2009, 8:14 pm, in reply to "Re: CA tax help, printing of edocs/up to $400?"
69.235.48.229
Just like Paul mentions below on costs running a business being deductible on your Sch. C, you can also deduct for business mileage on your car to the extent that you maintain written records of your mileage. But again this is a deduction against income on your Sch C, not "exempt" from taxes.
You also have the ability to depreciate (a special class of deductions in effect) business equipment such as computers, office furniture, printers etc. that are purchased exclusively for business purposes. Some items can be written off in the year purchased, others over 5, 7, or 20 years, some items you can choose which way you wish to address them up to certain dollar limits.
Then theirs the home office deduction, with both positive and very negative ramifications....
The list goes on, and on.
But exempt? Only fee income is exempt from SE, but not income taxes. However if you don't have another job, and need the higher qualification amounts needed to qualify for max SSI some day (assuming it's actually around when wanted/needed), doing this could be a bad choice.
As with anything in life, there are pros and cons to every decision. Beyond that there are only three things guaranteed in life: birth, death, and being taxed.
Message Thread:
« Back to thread