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Side gig—what to deduct
Posted on 1/21/23 at 7:00 pm
Posted on 1/21/23 at 7:00 pm
So last year I finished my basement while I was working from home and decided I’d start a side gig as a handyman, so I started an LLC, got set up in quickbooks and started picking up work doing plumbing and electrical non permit non license required work. On pace to make 2-4k per month. What should I deduct besides home office, phone, internet, materials, tools, and overheads. I have a personal leased vehicle, can I deduct a portion? In the future should I lease in the business name? Should I throw a dinner in there every once in a while? What are some legit deductions to avoid/reduce taxes?
7
Posted on 1/21/23 at 8:30 pm to dillpickleLSU
Paging LSUFanHouston…
Posted on 1/21/23 at 8:53 pm to dillpickleLSU
Pay me $200 an hour and I'll be glad to help. These charges would be deductible.
Posted on 1/22/23 at 3:27 pm to dillpickleLSU
quote:
What should I deduct besides home office, phone, internet,
Home office can be a red flag. It has to be literally the space’s only function.
Same with cell phone, internet, etc.
Easier to prove IF you keep it all separate.
You can keep mileage as a log. It may not be worth it to buy/lease a separate vehicle.
Posted on 1/22/23 at 5:18 pm to makersmark1
quote:
Home office can be a red flag. It has to be literally the space’s only function.
This
I just moved back into a corporate role after owning my business for 5 years. Still keeping 1 client and plan to expense gas, dinners, vacations and any work related materials.
Posted on 1/22/23 at 6:16 pm to dillpickleLSU
We're 31t in debt, pay your damn taxes.
Posted on 1/23/23 at 7:22 am to dillpickleLSU
That's not half bad side gig money. What is your end goal with it? You thinking about getting into a trade long term and going full time? Or are you doing it to reduce debt/pad savings or retirement?
Posted on 1/23/23 at 7:44 am to j1897
quote:
We're 31t in debt, pay your damn taxes.
We have no spending or waste problem with Government, right? The level of stupid is strong with your post. 2022 was the highest income tax collection in US history.
Posted on 1/23/23 at 2:55 pm to dillpickleLSU
quote:
I have a personal leased vehicle, can I deduct a portion?
Yes, just have a mileage log to show what percentage of mileage / actual expenses you should take. There are plenty of apps that make this easy.
quote:
In the future should I lease in the business name?
Doesn't make a difference really tax wise. Talk to your insurance agent... if you have it in personal name and get into an accident while traveling to a job, need to make sure it's not going to be an issue.
quote:If you are eating while working? Sure.
Should I throw a dinner in there every once in a while?
quote:
What are some legit deductions to avoid/reduce taxes?
Few people have mentioned home office being a red flag. It's not... but you have to actually qualify for it. And if you are doing all your jobs at client locations, I doubt that there is any part of your home that is exclusive to the job. Maybe if you had a shed that you only used for work tools and supplies.
Also, at that income, I'd consider a retirement plan.
This post was edited on 1/23/23 at 2:56 pm
Posted on 1/24/23 at 9:49 am to dillpickleLSU
You can deduct the sqft of your home office for electricity, cable or whatever else you have in there that is used for your home office.
Don't exaggerate your sqftage though. One guy I know had a 2,500sqft house and wrote off 1,700sqft claiming it was his office
Don't exaggerate your sqftage though. One guy I know had a 2,500sqft house and wrote off 1,700sqft claiming it was his office
Posted on 1/25/23 at 4:06 pm to LSUFanHouston
I do have a space that is only for my tool storage.
I haven’t considered a retirement plan yet. My regular job has a 401k with 7 percent match and a pension. We moved in 2020 and hate the neighborhood, but it is a twin house(kind of like a duplex). So right now my plan is show the extra income for 2 years, rent the twin and buy a single family house. The twin could be an investment for my kids college down the road.
I haven’t considered a retirement plan yet. My regular job has a 401k with 7 percent match and a pension. We moved in 2020 and hate the neighborhood, but it is a twin house(kind of like a duplex). So right now my plan is show the extra income for 2 years, rent the twin and buy a single family house. The twin could be an investment for my kids college down the road.
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