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03/26/2006 07:34:12 AM · #1 |
So, I still do not know exactly what we are doing taxwise. We are going to see someone tomorrow (or sometime this week) and I HOPE they can help.
If you recall from previous posts of mine, I made $1100 doing work for a magazine last year and received a 1099 from them. That $1100 I made reduced our refund by $400! I've gone through and found all the receipts I could and I spent.....
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...$10,392.93 on gear last year! Several people suggested that I should just claim myself as a business so I can take a deduction for all my equipment. Not sure what portion of that is deductable. I also made $768 from stock photography (before their cut). I guess I should claim that as well if I file as a business?? They never sent a 1099 or anything.
I did find my receipts from 2004 as well.I purchase $4300 worth of equipment then. Can stuff I bought in 2004 be used for 2005 deductions?
I really need to get the guts to just go get my business license here in Guam. There is a big need for a photographer here on base. I could make a killing but I am so scared of screwing up. I also don't know where to start as far as the business end of it. There is no sales tax on Guam (or on base for that matter), and my taxes would be paid to the US because my husband makes more from the Navy. If I made more, then all our taxes would go to Guam.....from what I understand anyways.
Thanks again for helping me out :) As you probably can tell by my rambling, I am so confused...LOL
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03/26/2006 08:54:36 AM · #2 |
I don't know how things work out there but got to a professioanl. I know if you claim yourself as a business you then have to pay a business tax which might be more then what you can deduct. As for the busness thing all you can do is try. If it works great if it doesn't, as long as it didn't break you, then nothing really lost.
How do you like Guam, I may be going there soon?
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03/26/2006 09:17:56 AM · #3 |
Originally posted by puma:
I don't know how things work out there but got to a professioanl. I know if you claim yourself as a business you then have to pay a business tax which might be more then what you can deduct. As for the busness thing all you can do is try. If it works great if it doesn't, as long as it didn't break you, then nothing really lost.
How do you like Guam, I may be going there soon? |
We have only been here for 3 months, so far, and we really like it. Things are more laid back here and it is just so darn gorgeous! I know I will be sad to leave in 3 years. I just really wish there was a good camera store on island...LOL I need to order some seamless background paper, and it will cost me $50 to ship a $50 roll.
Why might you be headed this way??? I see in your profile you are in CO. I am a native :) Born in Pueblo, raised in Northglenn. Got married and have lived in Texas, Florida, and now Guam in the past 7yrs!
Thanks for the advice on the taxes. They suck. I am SO tempted just to say 'screw it' and take the $400 hit.
Jenn
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03/26/2006 10:49:51 AM · #4 |
see a CPA to be sure...
Running a business from home is one way to make the system work for you!
We're getting back all but $400 in federal taxes - a nice refund of $5600!
YOu get to deduct all your business expenses (or depreciate the more expenseive things) - this includes postage, printer paper, etc. You can deduct a percentage of your rent/mortgage, taxes, utilities, etc. I use 22% of the squarre footage of my home for my business, so 22% of all the gas/electric, property taxes, mortgage interest etc gets deducted on the business - and some of that on m personal income as well - so i can deduct it twice! I put in a new furnace last year - $4500. 22% of that I can depreciate as part of the business!!!!!!!!!!!!!
So yes, it's worth the hassle to run it as a business IF you are trying to run it as a business. My tax man (a CPA) charged me/us $220 for the paper work, e-file, etc. I can guarantee there is no way i'd get that much back and i'd spend 100 hours trying to read and understand the IRS pubs, and probably still miss stuff and make mistakes. I categorize (advertising, equipment, prints, etc) and add up the totals, and then he takes it form there. I don't even show him my receipts, just the totals.
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03/26/2006 11:05:58 AM · #5 |
I my be coming over there for work. It is a new position that I hope I get but time will tell. Depending on how things work out I will write you and see if I can bring you out what you need but this may no be for two months.
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03/26/2006 11:17:15 AM · #6 |
I may be way off track here? (UK bod) but I seem to remember that if 22% of your home is used as your 'office' if/when you come to move 22% of the sale price is subject to business tax. (forgive me if its incorrect, I don't mean to alarm peeps if I'm wrong).
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