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Old 01-31-2015, 09:56 AM
 
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OP, your wife can still make a traditional IRA contribution for 2014 and you can deduct it on your joint return. You have until 4/15/15 to make the contribution.


And of course you can write off your business loss, as long as it really is a business with the intent of making a profit, and the expenses are legitimate.
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Old 01-31-2015, 09:59 AM
 
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Originally Posted by Lowexpectations View Post
Driller's take on all tax bills is simply to create a small business even if it really does nothing and write off all your expenses. It's not something most would recommend with the same free candy strategy driller takes it as
I will tell you how I learned this lesson........

I grew up very poor........and LOVED horses. (doesn't most little girls???)

So.......I went to horse shows......locally....when I could and met people.

As a young adult I was working with horses........mine and others and began going to world class shows.

I was "horse poor"........working three low wage jobs.

One of the people I met while at the shows was Sam Walton's tax accountant.

He showed me how to write off my horse expense.......and get back ALL of my money that was taken out......state and federal..........but, not FICA.

That is when I started looking at the tax codes.
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Old 01-31-2015, 10:12 AM
 
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Originally Posted by Driller1 View Post
I will tell you how I learned this lesson........

I grew up very poor........and LOVED horses. (doesn't most little girls???)

So.......I went to horse shows......locally....when I could and met people.

As a young adult I was working with horses........mine and others and began going to world class shows.

I was "horse poor"........working three low wage jobs.

One of the people I met while at the shows was Sam Walton's tax accountant.

He showed me how to write off my horse expense.......and get back ALL of my money that was taken out......state and federal..........but, not FICA.

That is when I started looking at the tax codes.
There's nothing at all wrong with writing off legitimate expenses. It's when you start writing off illegitimate expenses that you run into trouble. For example, a dirt bike might be a legitimate business expense if you are an orchard farmer and use it to ride around your acreage, checking your trees. However, if you buy a dirt bike to ride for pleasure, it is not a legitimate business expense simply because you mention your business while you are sitting on it.
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Old 01-31-2015, 10:26 AM
 
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Originally Posted by Petunia 100 View Post
There's nothing at all wrong with writing off legitimate expenses. It's when you start writing off illegitimate expenses that you run into trouble. For example, a dirt bike might be a legitimate business expense if you are an orchard farmer and use it to ride around your acreage, checking your trees. However, if you buy a dirt bike to ride for pleasure, it is not a legitimate business expense simply because you mention your business while you are sitting on it.
Add a little sticker.......with the name of the business.
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Old 01-31-2015, 10:30 AM
 
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BTW.......an audit is not the end of the world.

In fact the first time I was up set about it...........and then a little disappointed........no big deal.

The auditor did show me how to write of 100% of our pet dog's costs.......she loved it because it was really our dogs in our ads.
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Old 01-31-2015, 10:33 AM
 
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Originally Posted by Driller1 View Post
Add a little sticker.......with the name of the business.
Adding a sticker does not change the facts. OP has already stated he bought the dirt bike for pleasure.
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Old 01-31-2015, 10:37 AM
 
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Originally Posted by Driller1 View Post
BTW.......an audit is not the end of the world.

In fact the first time I was up set about it...........and then a little disappointed........no big deal.

The auditor did show me how to write of 100% of our pet dog's costs.......she loved it because it was really our dogs in our ads.
I agree, an audit is not the end of the world. Most auditors (not only the IRS ones) I have encountered are very reasonable folks. Nonetheless, they disallow non-legitimate deductions.
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Old 01-31-2015, 10:41 AM
 
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Originally Posted by Petunia 100 View Post
I agree, an audit is not the end of the world. Most auditors (not only the IRS ones) I have encountered are very reasonable folks. Nonetheless, they disallow non-legitimate deductions.
Maybe.........I did not have any non-legitimate deductions.

I got a 1099 very late........mid-summer.

So I filed a 1040 X........that was not the right thing to do.
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Old 01-31-2015, 10:43 AM
 
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Originally Posted by Petunia 100 View Post
Adding a sticker does not change the facts. OP has already stated he bought the dirt bike for pleasure.
To us........not the IRS.

It is how it is USED.

We bought a big TV for our family room one year.

Now, it is in the office.
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Old 01-31-2015, 10:44 AM
 
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Originally Posted by Driller1 View Post
Do you ever talk "business" with others while enjoying your dirt bike???

If so........I would use it under.....vehicles, machinery and other equipment.

Don't forget your home has insurance......utilities......taxes....maybe a mortgage......or, you can rent space to yourself.


This is not a legitimate business expense talking on your dirt bike


You can't write off your mortgage insurance etc, it has to be prorata based on sqft
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