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Tax write offs..

Discussion in 'Asset Protection/Taxes/Legal' started by Walley, Oct 22, 2007.

  1. Walley
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    Walley New Contributor Read Millionaire Fastlane

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    Can I write off my business license registration fee and other application fees as a tax write off? Let's say my business (sole proprietor) makes $1000 in a month. I pay myself $100 from the $1000. Can I write that off as an expense on my tax? Since I'm a sole proprietor it doesn't matter, because my business is me?
     
  2. bflbob
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    bflbob Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    Although Diane can probably confirm this...

    ...yes, you can write off the expenses, although some may have to be amortized, and...

    ...no, you can't write off the money you pay yourself, since a sole prop is a pass-through entity.
     
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  3. Diane Kennedy
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    Diane Kennedy Bronze Contributor

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    BFLBob has got the facts right.

    Just to expand a little:

    If you haven't begun your business yet, the fee will be considered a start up expense and you'll have to amortize it over 60 months.

    without any more info, I'm inclined to think it's a regular deduction as long as your business is currently operating.

    And, can you pay yourself? You can't pay yourself a salary from a Sole Prop - but you could pay your spouse a salary.
     
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  4. Walley
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    Walley New Contributor Read Millionaire Fastlane

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    Thanks
     
  5. Corrado79
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    Corrado79 New Contributor

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    Another great factoid. I was under the impression that start-up expenses were immediately deductible. Interesting. Thank you.
     

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