So, Why Are You Telling Us This?

Here’s why: Our WA businesses are home-based businesses and qualify for all sorts of favorable tax treatments. If you are not sure what those tax benefits are, please hire a tax professional to show you the ropes. I can almost guarantee that he or she will find you much more money than cost you. Or, if you feel comfortable enough to do your own taxes, then do so. However, I would strongly encourage you to take advantage of one of the current tax software options, such as one of those previously mentioned.


The three mentioned above are my personal choices, but there are others that are also good. Virtually all tax preparation software will help to maximize your tax savings. Note that there are some free programs available, too. In some cases, the program is free if you are only filing the 1040EZ version or if you only have a federal filing.


Also, many of you have other types of businesses or you may have in the future. Depending on the type of business, you may have additional expenses not mentioned here. As a matter of fact, if you are just beginning your business career, it would be a smart business move to hire a tax preparer at least for the first tax filing season. That way, you’ll be sure to maximize your tax savings, and the savings can be significant.


Next Up: Tax Treatments

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LynnB1 Premium
My best friend is a CPA so I don't worry about it.
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Joshua2765 Premium
@LynnB1
Don't ever lose that friend! Lol!

Awesome!
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Steven-A Premium
thanks. i always used a tax lawyer but did it myself last year and this year. it wasn't that hard.
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Joshua2765 Premium
@Steven-A
You did it exactly like it SHOULD be done, Steven. Let a pro show you the ropes in the beginning. Once you've seen it done a few times, it is relatively simple.

Continued success,

Joshua
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Steven-A Premium
@Joshua2765
Thanks, Joshua. It's always easier to follow the path
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JerryMcCoy Premium Plus
Great post and information.
Jerry
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Joshua2765 Premium
@JerryMcCoy
Thanks, Jerry.

Best to you,

Joshua
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pitofly Premium
Thanks for this training! I usually use TurboTax.
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Joshua2765 Premium
@pitofly
Great program. That's the one I used for my 2017 filing (completed this year). Thanks for checking out the training, by the way.

Continued success,

Joshua
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Sdawson001 Premium
nice training. I had a legal single entity LLC for several years, but for all those years I did not make a profit. I did claim expenses, pay for the state and city business license, submit sales taxes online, and all. But after several years with no profit, my CPA's told me to close down the business, I only had a hobby. So I'm a hobbiest right now until I need to become a business again. Sometimes it can be so confusing when you are trying to do it all legal even.
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Joshua2765 Premium
@Sdawson001
Shirley, did you file a business return in those early years? The IRS allows you to claim a loss for a few years, but here is the general rule:

"The general rule is that if you have not turned a profit in at least three of the prior five years, the IRS will categorize your business as a hobby. This may be extended to a profit in two of the prior seven years in the specific case of horse training, breeding or racing."

Also, how long ago was that? You are able to file an amended return for up to three years after the due date of the original return (File IRS Form 1040X).

Finally, your WA business has nothing to do with those other businesses. You are legitimately operating an internet business to make a profit. Thus, you can, and should, treat it as such. If your CPAs are telling you that you cannot claim expenses for your WA business, I'd look for another CPA.

Anyway, wish you continued success,

Joshua
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