So I have a single member LLC in Florida. I have a private mailbox as my mailing address, and I have my Lawyer and his business address as my registered agent. My question is this, I talked to my cpa and I am still unclear on what to do, I basically do everything out of my house, and even use a bedroom soley for my business stuff. But I did not want my house attached to my LLC just to have that extra layer of protection. So I was told I can not right off that room since it is not an official address of my business, which I guess I understand and it is what it is. But then was told I need to drive to my mailbox, and then from there can record the vehicle milege from my mailbox to the clients house as an expense to write off, but not back home since I am not going back to the mail box. So what are others doing? I would like to just record the mileage from my house to the clients and then back home, that would be the easiest, but I also want to protect my house.
I don’t bother with the office write-off because it ends up being a lot of additional work on the taxes and the amount is a pittance in comparison to the overall return.
I agree with Cameron. Don’t make it harder than it has to be. Crazies will jump in any second and disagree with me.
By the way, if you want an extra layer of protection on your residence, consider placing your home in a trust. That way if you’re sued, they can’t take your house. Check with your attorney and CPA.
My Acct told me to stay away from writing a room off , it raises flags with the IRS and will get audited quickly. Also if you sell your house, that room is given a value and goes as a capital gain on ur work taxes - or something like that, whacky stuff. Stick with Phone, gas, marketing costs, continuing education, Nachi dues, etc as expenses/ write offs
That makes sense and I totally agree. What about writing the mileage off for my vehicle. I leave my house, go to the clients and return to my house. But my principle place on my llc is my mailbox not house. I was told I have to go to the mailbox each time if I want to count it.
Honestly. I do not see reason to be exact on minor mileage calculations. My acct uses a general weekly or monthly formula that is practical. One week you may drive no where, next week 50 miles, week after 20 miles etc. its like rounding off to the nearest dollar when you have change. The IRS is not gonna come after you cause you wrote down am extra mile to the mailbox. I drive around neighborhoods when im bored and take pix of house components I’ve never seen before. I dont claim that mileage but its work related. It all pans out in the end
A few bucks and all the paperwork isn’t worth it to me.
I agree, not to mention when you go to sell your house you may have to pay taxes on the sale, of the square footage percentage used as a write off, relative to using it as a business deduction before the sale.
Please speak with your CPA about an S-Corporation.
I agree with Dale.
Do you want tax advice from a CPA or from out of work home inspectors who give tax advice on a message board?
Personally, I don’t leave a dime on the table. IMO I already overpay pay Uncle Sam & my CPA knows to take every deduction I am legally entitled to. That’s what I pay him for.
Here are some simple rules I follow.
- Act as if I’m always on camera.
- Perform every inspection as though I’m going to get sued.
- Keep my bookkeeping straight & in order with the thought that I could get audited anyday.
The home office deduction may not be worth it. Check with your CPA, but the it’s red flag for the IRS and increases your chances of an audit.
There is a time to take the home office deduction, that is in a year where your records are perfect.
Being a registered Republican or worse, a known Tea Party member or associating with known Tea Party members will raise a “red flag” with the IRS and increase your chances of getting audited by them. The best thing you can do to limit your exposure to the IRS is register as Democrat or Communist and make political contributions to the Democrat/Communist Party. I wouldn’t worry of the home office deduction.
Buy some real estate rentals and see your taxes decrease dramatically.