without talking to a financial advisor...

E

Envious Eric

New member
I am about to register my business name and file all the necessary forms, but I was curious on one thing....



I have all my receipts for products I have bought to get started with a detailing business. Can I use those as a tax write off even though my business was not setup at the time of purchase...
 
your products most definitely will not be a tax write OFF, if you write them off your personal taxes you'll generally have to pay a "use tax" for your business which is basically equivalent to sales tax.



the states won't come after you if your business doesn't pay use tax on the items you already paid sales tax on personally, but if you try to write it off your personal taxes but don't file for your business to pay those taxes you might be looking at a possible issue.
 
autobahn said:
your products most definitely will not be a tax write OFF, if you write them off your personal taxes you'll generally have to pay a "use tax" for your business which is basically equivalent to sales tax.



the states won't come after you if your business doesn't pay use tax on the items you already paid sales tax on personally, but if you try to write it off your personal taxes but don't file for your business to pay those taxes you might be looking at a possible issue.
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:confused:



That's it, I'm hiring an accountant!!! :p
 
The simple answer is this. If you were making money and paying taxes on that income, you can claim the products you purchased during that time as a business expense. Whether you're set up as a 'business' or not. If you were getting paid under the table and / or not claiming the income on a 1099, you cannot use those expenses to offset your income.

I do not take a salary from my company, everything is paid to me as an independent contractor (not as an employee), and then as profit distributions at the end of the year as the owner. I do pay some expenses out of my pocket (vs. letting th ecompany pay for them), and I always claim those against my 1099.
 
toyotaguy said:
I am about to register my business name and file all the necessary forms, but I was curious on one thing....



I have all my receipts for products I have bought to get started with a detailing business. Can I use those as a tax write off even though my business was not setup at the time of purchase...
Click to expand...



Couldn't you personally sell the product to your business? The business would pay for the product that was left in each bottle and also the equipment you will be using. It would be no different than going out in the open market and buying used equipment for your business from someone else. Just make up a receipt and put it in with your business papers.
 
kompressornsc said:
The simple answer is this. If you were making money and paying taxes on that income, you can claim the products you purchased during that time as a business expense. Whether you're set up as a 'business' or not. If you were getting paid under the table and / or not claiming the income on a 1099, you cannot use those expenses to offset your income.

I do not take a salary from my company, everything is paid to me as an independent contractor (not as an employee), and then as profit distributions at the end of the year as the owner. I do pay some expenses out of my pocket (vs. letting th ecompany pay for them), and I always claim those against my 1099.
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X2.





You would charge the supplies under expenses and should have some income to show against it: Schedule C.
 
let me put it this way: SOMEONE has to at least pay the sales tax for your work-related expenses.



things really get sketchy if you're a sole proprietor, since YOU are the company
 
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