g*********1
发帖数: 359 | 1 It is a pain on ass to file tax return! I feel something has to be done to
facilitate filing for future return.
Definitely filing as a small business status will maximize our return.
We need convince IRS, we do have businesses with legal incomes and
reasonable expenses. Legal incomes are not a problem since we could
claim we are startup and no profit yet for first couple of years and
after that, we may start another business that is also a startup. Just
like we have pennystock club and for sure we can have pennywater too.
The big thing is expense! You've got to have something to say if you are
audit unluckily.
I think from now on, use a credit card exclusively to register your "Office
costs or any business expenses". Make a record for any expense for your car
which you will claim to be the transportation tool for your business.
I am not quite sure if having a TAX Number is a good idea. The advantage is
that you can hire someone to work for you. The disadvantage is from now on
you need file 3 times per year and have much bigger risk to be auditted.
(need to be confirmed)
I wish to have some ideas from someone really has his own business and do
these things routinely. Otherwise,I am YYing here... | K**********r
发帖数: 2640 | 2 Several points here:
1. Filing as a SB is not specific for Stock traders. That is, even if you
are not a Stock trader, you may still file as a SB if you are involved in
some business activities that gain, loss or expense has incurred.
2. People buying and selling stocks can fill as a trader and as a SB if they
have notified IRS before 4/15 of the previous year. In that case, the gains
or losses are supposed to include those caused by the Stock trading.
3. To fill as a SB, the hardest part is not calculating, but finding enough
proofs or excuses that those expenses should be attributed to the SB. In the
end, you may find you are actually wrestling with yourself in determining
whether certain parts should be treated as expenses. In determining that
type of expenses, a CPA will not be of much help. For example, how to define
your business area in your home. If you move those two sofas a little
farther, doesn't it mean you got a larger business area?
4. Depending on situations, a SB may be required to register with local
authorities, but that may not be related to the filing of tax return.
Ge Fei can file as a SB this year because he got income other than stocks
and are self-employed. His stock gains are not part of his SB income, and so
those portions go directly to Schedule D, while Schedule C records his
losses and gains from the business activities other than stock trading or
his wife's wage.
Other people's situations may be different. If you work from home and has a
home office, although you are an employee of a company, but the company does
not pay the expenses of your home office use, in some cases, you may still
be possible to use Schedule C. Read IRS instructions carefully to figure out
the correct way when filing your tax return... |
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