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Click to view jackzee's profile Professional jackzee 7 posts since
Feb 17, 2009
15. Re: Event Mar. 31: Navigating business taxes with TurboTax Mar 31, 2009 2:34 PM

What tax deduction opportunities do I have with used office purchases (e.g. I purchased an old counter and some other used furniture)?
Click to view bmeighan's profile EXPERT bmeighan 10 posts since
Feb 20, 2009
16. Re: Event Mar. 31: Navigating business taxes with TurboTax Mar 31, 2009 2:36 PM
in response to: antiques4me
The area of charitable contributions has changed significantly in the last few years because of abuse. Taxpayers were overstating the value of contributed property, inflating cash contributions, etc. So the IRS put into place strict rules governing the requirements for claiming a charitable contribution deduction.

For example, you now need receipts for everything. That may be a receipt from the recipient, a cancelled check, a sales receipt, etc. For items of clothing,furniture and other household goods, the items must be in "good" condition or
better to qualify for a deduction. If you're donating a car, not only will you need a receipt but you'll also have to find out how much the charity sold the car for to earn a deduction. And, you deduction will be for the amount for
which the car sold. When it comes to valuing items of property, I highly recommend relying upon the values published by ItsDeductible. This is included with TurboTax and provides "fair market values" of thousands of items.

ItsDeductible will provide much higher deductible valuations than those provided by Goodwill or Salvation Army because ItsDeductible uses current selling prices for
millions of auctions from the eBay site. My final point is this... these are all generic rules so pay attention to the details.
Click to view bmeighan's profile EXPERT bmeighan 10 posts since
Feb 20, 2009
17. Re: Event Mar. 31: Navigating business taxes with TurboTax Mar 31, 2009 2:38 PM
in response to: jackzee
jackzee... You can deduct the depreciation on used equipment and furniture you use for your business (like a home-based one). It's no different than if you had purchased it new other than you paid less for it. Likewise, you depreciation deduction will be slightly less too than if it were new. The other thing to remember is that for many assets you have the option to write off the full amount in the first year (known as section 179 deduction).
Click to view franklinplace's profile Professional franklinplace 4 posts since
Mar 31, 2009
18. Re: Event Mar. 31: Navigating business taxes with TurboTax Mar 31, 2009 2:38 PM
This is my first year in business. For personal taxes it gets confusing when it comes to deductions for medical/health expenses. Always scrambling for receipts. How does Turbo Tax help me sort this out for my business expenses paid for employee health benefits?
Click to view bmeighan's profile EXPERT bmeighan 10 posts since
Feb 20, 2009
19. Re: Event Mar. 31: Navigating business taxes with TurboTax Mar 31, 2009 2:46 PM
in response to: franklinplace
franklinplace... Congrats on your first year in business! If you can make it in these challenging times, you can make it anytime. Best of luck!

First, while TurboTax will help you navigate the maze of rules and regulations, we can't help you get organized. That is something you will have to master. My tip to you is always keep your business and personal expenses separate. If you have to use a separate credit card for business purchases, I encourage you to do this. It helps at tax time.

Depending on your business structure (I assume you are a self employed small business owner... as opposed to having a corporate or partnership structure), your medical expenses will be treated as a personal expense subject to the regular rules for deducting medical expenses (subject to 7.5% of your adjusted gross income). However, there are some provisions that allow you to deduct some of these medical expenses as "an above the line deduction" (line 29 on Form 1040) for those who are self employed. This is a great way to reduce your income for an expense that generally is not deductible for many taxpayers.

Here again, TurboTax will walk you through this area to ensure you get the biggest deduction and thus the biggest refund.
Click to view bmeighan's profile EXPERT bmeighan 10 posts since
Feb 20, 2009
20. Re: Event Mar. 31: Navigating business taxes with TurboTax Mar 31, 2009 2:56 PM
In closing, there are two weeks left before April 15. My advise to you is as follows:

  1. Start now. Tax filers who wait until the last minute tend to make more errors. Starting now also allows you to identify and documents you may be missing.
  2. Go Online. I mentioned this above. It's easy and convenient, and for many filers it is free.
  3. File Electronically. Other than the fast refund you get by efiling your return, you don't have to print, copy, sign, staples W-2s and run down to the post office. Plus, most tax software services offer free federal electronic filing. It's a great deal and will greatly reduce the frustration of mailing your return.
  4. File an Extension. If you can't make the April 15 deadline, file an extension. The extension gives you a 6 month "grace" period in which to file your return. However, it does NOT give you an extension of time to pay. If you owe the IRS (or state), you need to pay that on or before April 15. Again, tax software will help you identify whether you have a liability and file the necessary form for the extension (Form 4868). Don't forget that you may also need to file an extension for your state. Each state has different rules so I can't generalize other than to say most states honor the IRS extension (but you'll have to pay the state if you owe them).
Good luck and I hope you get a big refund.
Click to view CommunityTeam's profile sboc CommunityTeam 132 posts since
Jul 27, 2007
21. Re: Event Mar. 31: Navigating business taxes with TurboTax Mar 31, 2009 2:57 PM
Bob - Thanks for taking the time to share your expertise with SBOC. With tax deadlines just around the corner, we appreciate the timely tips and advice your provided to the Community.

Community - If you would like to learn more about TurboTax, please visit http://www.intuit.com/ or http://turbotax.intuit.com/
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