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I'll answer this quickly in an attempt to stop the multiple topics you're opening.
Yes, you're likely to get audited because you're lying on your taxes. It doesn't matter if your business is likely to disappear tomorrow, you only get to depreciate the percentage of the cost related to the time the asset is in service. The reason for this is that you can likely sell the $800 couch for $700 at the end of 1 year. Taxes don't care if your "business" dies tomorrow, you can't depreciate the entire asset for furniture.
That said, you're going to have a lot more problems if you're subleasing without your landlord's knowledge. Both your landlord and your tenant may have grounds to sue you.
Either do this right and get permission a head of time, or don't do it. Personally, I think your entire situation should be an audit flag. A person who becomes a landlord for less than one year sounds sketchy.
And FYI, having a roommate is not considered a business under normal circumstances.
Not everything can be depreciated... Do you even know what depreciation is, or are you just saying things should be depreciated because you think it'll help your taxes?
Not everything can be depreciated... Do you even know what depreciation is, or are you just saying things should be depreciated because you think it'll help your taxes?
When I use turbotax and choose schedule c (because I think (maybe I am wrong) c is for active role because I change sheets and serve breakfast), the word depreciate is not mentioned
There is just one category called
18 Office expense (see instructions)
When I use turbotax and choose schedule c (because I think (maybe I am wrong) c is for active role because I change sheets and serve breakfast), the word depreciate is not mentioned
There is just one category called
18 Office expense (see instructions)
You're using the wrong schedule. You need to report your rental income and expenses on Schedule E.
But I was told to use schedule c because I have an active role in the business (changing bedsheets and serving breakfast)
That's nice. Nonetheless, rental income and expenses are reported on Schedule E.
Quote:
Originally Posted by michellesouthwell
If I write off all the furniture in one year am I likely to get audited?
I do not know how long my landlord will let me sublease to other renters.
I don't know how likely you are to get audited. I do know that the depreciation rules are what they are. You don't get to write off fixed assets in one year simply because you might not be operating the next year.
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