Business Question

[Cow Poke]

AND, I used to over-report my income and under-report my expenses because I was afraid of an IRS audit ----

By the way, I have only been audited by the IRS ONE TIME, and when I met with the auditor, I explained --- "I have under-reported my expenses and over-reported my income because I was afraid of an audit..." and he said, "well, we'll just see about that...."

He picked some random deductions to verify, and I was able to justify MORE than I claimed on all three of them. He kinda looked over my Schedule C, and said, "ok, that's enough for today" (He had "adjusted" my return about $120 in my favor!)

I said, "oh, NO, let's keep going!" I pulled out other receipts, and by the time we were done, I walked away with the IRS owing ME $732!

[Teallaura]

[Teallaura]

Hmm, I do need to do a better job of keeping up with 'supply becoming product'...

[DesertBerean]

Whoa - first I need to actually make enough to afford business equipment. Manila folders work just fine to start with.

Actually, a cheap scanner would be nice...

No, bad girl! Bad!


I spent $70 on yarn and needles today. IF I made only long scarves that would be $375 in inventory so...



Hi, I'm Teal and I'm a yarn addict....

*trying to figure out how we got from computer support to yarn addiction* ....well...you seem to have a handle on markups anyway.

[rogue06]

*trying to figure out how we got from computer support to yarn addiction*

Um. This IS Tweb. It's amazing that they're still even remotely on topic at this point.

[Teallaura]

*trying to figure out how we got from computer support to yarn addiction* ....well...you seem to have a handle on markups anyway.

Well, I've already got two businesses - both small (water aerobics classes and selling ruffle scarves... I should put that link in my sig, huh?) and IF (really big if) I opened a shop it would be the base for the third, computer support for novices.

See? They all connect...


And I am half finished with the scarf I started last night... I can stop anytime I wanna...
















































































I just don't wanna!

[Teallaura]

Since I'm off topic anyway, what's the best way to organize paint? Color, type or where-the-heck-you-used-it?

[Cow Poke]

Um. This IS Tweb. It's amazing that they're still even remotely on topic at this point.

b to the a and c to the con! BACON!

[DesertBerean]

Well, I've already got two businesses - both small (water aerobics classes and selling ruffle scarves... I should put that link in my sig, huh?) and IF (really big if) I opened a shop it would be the base for the third, computer support for novices.

See? They all connect...

just so. Forgot about those.

[rogue06]

b to the a and c to the con! BACON!

Get it right. It's b to the a to the c-o-n. What you spelled was "baccon"

[Cow Poke]

Get it right. It's b to the a to the c-o-n. What you spelled was "baccon"

Since when are you more worried about bacon than eating it, Vanna?

[Sparko]

Good luck Teal.

some things I learned from having my own business doing pretty much what you want to do (computer consulting) and also building PCs like CP did.

1. Friends and Family. Good and bad. Good because they are great "word of mouth" advertizing. Bad because they want you to help them for free and can eat up a lot of your time.
2. Pricing - remember that you will not be working a full 40 hours, it will be sporadic. And you have to pay your own social security and various business taxes on the income so whatever you charge, you will probably be losing around 30% to stuff like that.

[Cow Poke]

Good luck Teal.

some things I learned from having my own business doing pretty much what you want to do (computer consulting) and also building PCs like CP did.

1. Friends and Family. Good and bad. Good because they are great "word of mouth" advertizing. Bad because they want you to help them for free and can eat up a lot of your time.

Like Abe said... "my time and advice are my stock in trade". So, yeah, people will try to get as much of your time for free. You gotta guard against that.

2. Pricing - remember that you will not be working a full 40 hours, it will be sporadic. And you have to pay your own social security and various business taxes on the income so whatever you charge, you will probably be losing around 30% to stuff like that.

That's where business expenses come in. Take every legitimate business deduction you can. In my current situation, I have a garage apartment at the back of my property that I use exclusively for consulting / business. I deduct that whole square footage and relative utilities as business expense. Plus tools and equipment.

[Sparko]

Home office deductions can be tricky. You have to be able to prove that you are using whatever portion you claim for business. So if you do have a spare room that you want to use as an office, it is best done like CP says, just for that business. I never bothered with that myself. I felt I would be setting myself up for an audit. I did write off business expenses and supplies though.

[Cow Poke]

Home office deductions can be tricky. You have to be able to prove that you are using whatever portion you claim for business. So if you do have a spare room that you want to use as an office, it is best done like CP says, just for that business. I never bothered with that myself. I felt I would be setting myself up for an audit. I did write off business expenses and supplies though.

Yeah, you need to be able to easily document what you claim. It's best when you have a separate room or, in my case, a separate building. I have an office in my house exclusively for my pastoral study/counseling, etc, but I don't claim that because it'd be too easy to contest that it's also a place where I can watch TV, take a nap, etc.