Work at Home Reviews

Archive for the ‘Tax Deductions’ Category

Question: For anyone who has time- math / language arts?

Bobo was walking down the street one day minding his own business when a man wearing an advertising sign came up to him and handed him a flyer. It said:

Answer: Bobo is unfortunately mistaken. The reason this is so is because the flyer is wrong. The flyer actually is taking 35% off the discount price which is more than what the flyer actually is. Read the flyer carefully, it says to take 25% off and then an additional 10% off. This does not equal 35%. It ends up equalling around 32.5% off. Does this make sense? So, in the example, you really only save $15.28. So, when you approach Bobo, you either need to take a 32.5% discount or take a 25% discount and an additional 10% off. To do this, I’ve worked it out step by step for you below.

$123.00 x .75 [this is the actual amount he will pay.] = $92.25
$92.25 x .9 = $83.025 or $83.

Another way to do this is:

$123.00 x .25 = $30.75
$123.00 – $30.75 = $92.25
$92.25 x .1 = $9.225
$92.25 – $9.225 = $83.025 or $83

There is one other way to do this and that is to just take the actual total % off:

$123.00 x .325 = $39.975
$123 – $39.975 = $83.025 or $83

Hope this helps!

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Question: Any tips on starting a catering business from home?

I am not wanting to make a living. I just want some extra money and more or less a hobby. I was wondering if anyone had any business tips. Also, what percentage of utilities are tax deductible? What other tax deductions are there. What if my deductions are more than earnings? I’m thinking of doing cakes for showers and parties. Any bakery tips would be appreciated as well. Thanks in advance!

Answer: Most of your tax questions relate to where you are located. Use the resources below and drill down to get the specific information that you need.

Use this basic checklist to make sure all the important steps are taken before you launch your new venture. This business checklist will make sure that you cross all your t’s and dot all your i’s before your business launch.

Steps to Starting a Business -

http://www.developer-resource.com/starting-a-business.htm

Other sites you might find helpful are:
SBA – http://www.sba.gov/
SCORE – http://www.score.org
Small Business Resource – http://www.small-business-software.net
Business Link – http://www.businesslink.gov.uk/bdotg/action/home

Goodluck!

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Question: How much would I pay in taxes in Quebec, Canada?

I currently live in the US and am considering a move to Montreal. I operate a home business, and all of my income is coming from US sources, but I have been told that Canada taxes all worldwide income. Then it seems that the US would give me some sort of tax credit for what I paid to Canada.

I expect to make $25,000 before deductions. Does Canada have a similar system as far as self-employment taxes? Do they have a self-employment tax?

What abouts would I have to pay for tax, including federal and provincial?

Answer: If you move to Canada and operate a home business, that is CANADIAN-source income, regardless of where your client resides.

Only if you are a US citizen would you continue to file and pay US taxes, and receive a Foreign Tax Credit on your CANADIAN return.

Yes, if you are a sole-proprietorship, you must pay CPP premiums yourself. This is equivalent to SE tax.

For estimates use the tax calculator here:

http://www.taxtips.ca/calculators/taxcalculator.htm

Much, much more info here:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/menu-eng.html

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Question: Kathy is a self-employed taxpayer working exclusively from her home office. Before the home office deduction,?

Kathy has $3,000 of net income. Her allocable home office expenses are $5,000 in total. How are the home office expenses treated on her current year tax return?

Answer: She would file her tax return, plus form T2125. Any qualifying home office expenses she has can be used to lower her taxes to zero. Any expenses she can not use would be carried forward to a year when she had business income that she could use it on, to bring her taxes owing to zero. Home office expenses can only be used against her business income.

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Question: Can I separate home business taxes from my regualar job taxes?

I have started a party type home business. I also have a regular job w/taxes being held out. Can I file my income taxes on my regular job and then file separate taxes for my business? If so, do I need a business tax id #?

Answer: I work and have a home based type business (party plan) and do pretty well with it, as well as my regular “day job” which I have had to cut back on hours because the home business is doing so well.
I file together, using a schedule SE for my home business to take the deductions out such as mileage (a HUGE deductions) airfare and hotel for training events, and usually after the mileage is calculated I wind up owing nothing on my home based business. I also deduct postage and advertising expenses, and office supplies, demo products, and any losses such as damaged or broken items–I write them off.
I do travel quite a distance to do my parties, several times a week.
You cannot deduct clothing or dining expenses, or “fluff” your deductions, it will set off a big red flag, so be very careful that you only deduct what you actually can legally.

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