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Other Taxes

Frigg!

Administrator
Joined
Feb 12, 2018
Messages
358
#1
Ugh. It's tax time again.

But while we're on the subject, does anyone else have a side business they basically use to save money on their main income? Yes, it's stupid, but yes, it's legal. It's how rich people stay rich, and if they can do it so can I. Bring on that Schedule C!

Aside from that, does anyone have any idea what is going to change in that tax bill that got passed last year? I heard the ceiling for medical deductions was going to be lowered, which would help us a lot. It might even make up for the rest of the stuff that they seem to have taken away. I can't even tell what deductions are gone now. smh
 

ToyBoxOrphan

Administrator
Joined
Feb 12, 2018
Messages
257
#2
I haven't even tried to wrap my brain around the new bill. My taxes this next year won't be anything like normal anyway with Doc D going to Korea.

I don't have a side business just to save money on our main income, but it worked anyway. :lol: I did get us back some extra money with the loss this year. I expect another loss next year since I'm just getting started out. Unless, of course, the new tax bill just screws it all up.
 

Frigg!

Administrator
Joined
Feb 12, 2018
Messages
358
#3
It's going to be very different for us next year, because I don't know we can claim Pluffle as a dependant, but there are still massive out of pocket medical bills. So I'm going to have to figure out how to manage that one.

I know her hubby won't be able to write off her medical expenses, because they can't itemize and we can.

Can we claim an entire married couple as dependents? lol I mean they live here. I guess I have research to do.
 

Frigg!

Administrator
Joined
Feb 12, 2018
Messages
358
#4
I don't have a side business just to save money on our main income, but it worked anyway. :lol: I did get us back some extra money with the loss this year. I expect another loss next year since I'm just getting started out. Unless, of course, the new tax bill just screws it all up.
Oh, I don't think the tax bill will affect small businesses unless it's just to help them more.

It's why anyone who can find a reason to file a Schedule C should do so. Just make sure it isn't declared a hobby, and what you write off comes off your income before anything else.
 
Joined
Mar 2, 2018
Messages
72
#5
I haven't even tried to wrap my brain around the new bill. My taxes this next year won't be anything like normal anyway with Doc D going to Korea.

I don't have a side business just to save money on our main income, but it worked anyway. :lol: I did get us back some extra money with the loss this year. I expect another loss next year since I'm just getting started out. Unless, of course, the new tax bill just screws it all up.
Watch out for the IRS Hobby Loss Rules with Schedule C's IRS Hobby Loss rules guidelines

I unfortunately work in an accounting office, I am not an accountant, and I can tell you we don't know all the implications yet of the new tax laws. Some are probably not written yet, and many will be challenged in courts and may change. Or Democrats may take the House and Senate in the fall and change all the rules yet again, long before we even know what they were changed to.
 

Frigg!

Administrator
Joined
Feb 12, 2018
Messages
358
#6
Watch out for the IRS Hobby Loss Rules with Schedule C's IRS Hobby Loss rules guidelines


Oh most definitely. But I've been doing Schedule C for about 20 years and they haven't bothered me yet, so I think I've been careful. We all do a little side work in IT related stuff, so it really is more of a second business. For years I had a gardening business and most years it was a loss, which saved money on the husband's regular income, so it was worth it.

I unfortunately work in an accounting office, I am not an accountant, and I can tell you we don't know all the implications yet of the new tax laws. Some are probably not written yet, and many will be challenged in courts and may change. Or Democrats may take the House and Senate in the fall and change all the rules yet again, long before we even know what they were changed to.
The things that would hit us hardest is if we were to lose the home mortgage interest deduction. Rumor had it there was a ceiling, and we're below that. I think real estate lobbies would scream loudly if that deduction is taken away entirely. The housing market will suffer greatly and we risk another Great Recession with that, as many homeowners depend on that deduction to afford the mortgage payment.

I also heard that maybe the percentage for medical writeoffs was going to be lowered, which wow if that is so I will be very happy. About 30% of our net income goes to unreimbursed medical expenses, so that won't affect most people but it will be a huge improvement for us. I think. I mean our daughter is married and not on our taxes anymore, so I'm not certain how all that works.

I think the thing that pisses me off most about that tax bill is how politicians bleat about how business needs economic predictability.

Well NSS -- and WE don't???

Yeah, we just don't matter to those clowns. As long as they can make enough of us hate and fear enough to vote for their sorry butts, that's all they care about.
 

ToyBoxOrphan

Administrator
Joined
Feb 12, 2018
Messages
257
#7
I haven't even tried to wrap my brain around the new bill. My taxes this next year won't be anything like normal anyway with Doc D going to Korea.

I don't have a side business just to save money on our main income, but it worked anyway. :lol: I did get us back some extra money with the loss this year. I expect another loss next year since I'm just getting started out. Unless, of course, the new tax bill just screws it all up.
Watch out for the IRS Hobby Loss Rules with Schedule C's IRS Hobby Loss rules guidelines

I unfortunately work in an accounting office, I am not an accountant, and I can tell you we don't know all the implications yet of the new tax laws. Some are probably not written yet, and many will be challenged in courts and may change. Or Democrats may take the House and Senate in the fall and change all the rules yet again, long before we even know what they were changed to.
Well I'd obviously rather be successful than have the loss on my taxes. If it doesn't work out, it's just a failed business, I guess. I've got a couple years to figure it out.
 
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