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Originally Posted by NoSoup
I have a question for you, if you don't mind.
I am about to begin making a relatively high income, and have absolutely no tax shelters other than my retirement accounts.
I am 20 years old and live in an apartment. Within the next year, I will probably make 150k-250k, and I am unsure as to what I can write off.
I will be using my personal money for business expenses, as well as my own vehicle, and I believe that I can write that off, but other than purchasing real estate, do you have any suggestions?
Also, to write off utilizing my personal funds for business expenses, how exactly would I go about doing that? Do I keep reciepts? Log the mileage on my car?
Thanks in advance!
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Amazing how much things change
Well, this time around, I now own a home - specifically, a duplex.
I am currently living in half and renting out the other half. Now that I own a home, I'll have a whole slew of tax deductions, but I have a couple of questions about them...
As it is technically a rental property, I can write off pretty much whatever as long as it is being used for the home, correct? So far I have been saving receipts for materials for improvements, tools needed to make those improvements that I didn't have, furniture (it is a furnished duplex) washer/dryer, ect.
I assume I am required to claim the rent as income, but it should be offset by the amount of interest/taxes that I pay - at least that's what I am hoping.
In addition, I am paying for all of my business expenses out of pocket, including business lunches, advertising, and equipment. That comes up to a couple of thousand dollars a month. I also have been using my vehicle for business, but have not yet kept a log for mileage. Can I estimate useage prior in the year, or should I just start logging it now? If my vehicle were to need repairs down the road (it is still covered by warrenty now) would those be able to be deducted?
Also, I am investing heavily in my 401(k) as well as maxing out my ROTH Contributions... Anything else you can think of for me to do?
I will likely be picking up a couple more rental properties within the next year or two - I will probably live in the home I purchased for a minimum of two years before I decide to sell it - From my understanding, as long as I live in it two out of the past 5 consecutive years, I can sell it as my homestead without tax implications - unless I make a ridiculous amount of money from it. Is that true?
Thanks again for all your help