Sole prop / schedule C questions

#4 05-24-2004, 05:35 AM

Frederick Jorden wrote:
- quote -

> Harlan Lunsford wrote:
> > Robert wrote:
> > > Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
> > > > Robert wrote:

> > > > > 1. My wife is starting a business (sole proprietorship) and
> > > > > she flew to another city and took a class that was integral
> > > > > to doing the business. I understand that the air fare, for
> > > > > example, should go under travel on Schedule C. Where should
> > > > > the $99 fee she paid as "tuition" for the class go on
> > > > > Schedule C? I don't see a category that fits.

> > > > If these are expenditures beFORE she starts the business,
> > > > then not fully deductible but amortized over a period of
> > > > time, e.g. 60 months.

> > > Right, that's what the "Amortization" line is for on
> > > schedule C; I read about that yesterday. Supposing she goes
> > > for an advanced training class next year after she's made
> > > sales; where then? Travel would be my best guess.

> > After one is in business then any business connected travel
> > is deductible. Now, if at her hotel she charges other
> > items, e.g. meals in the dining room, these have to be
> > separated and deducted on the meals and entertainment line.
> > As for movies in the hotel room that you can't get at home
> > ......... oh, I forgot. she's a woman.

> That is a sexist remark! Some women like to view action
> movies.

I know; I KNOW. And I'm sure you know what kind of
"action" I was referring to. (grin)

Cheer$,
HL

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#3 05-20-2004, 04:37 AM

Harlan Lunsford wrote:
- quote -

> Robert wrote:
> > Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
> > > Robert wrote:

> > > > 1. My wife is starting a business (sole proprietorship) and
> > > > she flew to another city and took a class that was integral
> > > > to doing the business. I understand that the air fare, for
> > > > example, should go under travel on Schedule C. Where should
> > > > the $99 fee she paid as "tuition" for the class go on
> > > > Schedule C? I don't see a category that fits.

> > > If these are expenditures beFORE she starts the business,
> > > then not fully deductible but amortized over a period of
> > > time, e.g. 60 months.

> > Right, that's what the "Amortization" line is for on
> > schedule C; I read about that yesterday. Supposing she goes
> > for an advanced training class next year after she's made
> > sales; where then? Travel would be my best guess.

> After one is in business then any business connected travel
> is deductible. Now, if at her hotel she charges other
> items, e.g. meals in the dining room, these have to be
> separated and deducted on the meals and entertainment line.
> As for movies in the hotel room that you can't get at home
> ......... oh, I forgot. she's a woman.

That is a sexist remark! Some women like to view action
movies.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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#2 05-19-2004, 08:03 AM

Robert wrote:
- quote -

> Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
> > Robert wrote:

> > > 1. My wife is starting a business (sole proprietorship) and
> > > she flew to another city and took a class that was integral
> > > to doing the business. I understand that the air fare, for
> > > example, should go under travel on Schedule C. Where should
> > > the $99 fee she paid as "tuition" for the class go on
> > > Schedule C? I don't see a category that fits.

> > If these are expenditures beFORE she starts the business,
> > then not fully deductible but amortized over a period of
> > time, e.g. 60 months.

> Right, that's what the "Amortization" line is for on
> schedule C; I read about that yesterday. Supposing she goes
> for an advanced training class next year after she's made
> sales; where then? Travel would be my best guess.

After one is in business then any business connected travel
is deductible. Now, if at her hotel she charges other
items, e.g. meals in the dining room, these have to be
separated and deducted on the meals and entertainment line.
As for movies in the hotel room that you can't get at home
.......... oh, I forgot. she's a woman.

Cheer$,
Harlan Lunsford, EA n LA

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#1 05-17-2004, 11:03 PM

Harlan Lunsford <lunstax[at]bellsouth.net> wrote:
- quote -

> Robert wrote:

> > 1. My wife is starting a business (sole proprietorship) and
> > she flew to another city and took a class that was integral
> > to doing the business. I understand that the air fare, for
> > example, should go under travel on Schedule C. Where should
> > the $99 fee she paid as "tuition" for the class go on
> > Schedule C? I don't see a category that fits.

> If these are expenditures beFORE she starts the business,
> then not fully deductible but amortized over a period of
> time, e.g. 60 months.

Right, that's what the "Amortization" line is for on
schedule C; I read about that yesterday. Supposing she goes
for an advanced training class next year after she's made
sales; where then? Travel would be my best guess.

- quote -

> > 2. Depreciation. I read on the IRS site that I must
> > depreciate anything that has a useful life longer than the
> > current tax year. However, it seems that there should be a
> > reasonable limit to this and that I can expense inexpensive
> > items that may be durable. For example, suppose I buy a
> > stapler for my wife's business that I use in the manufacture
> > of items that I sell. Clearly, it has a useful life longer
> > than a year, but depreciating a $5.00 item seems like
> > overkill. How do other people handle this?

> All businesses have a floor for miscellaneous items like
> this. My favorite floor is 100$; others have higher
> minimums.

OK, that's what I thought. My own employer does the same
thing, but they're a bigger business so they do $3,000. I
just didn't read anywhere in the IRS regs about this
question, so I was curious.

Harlan,

Thanks for the reply.

Robert

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05-14-2004, 07:27 AM

Robert wrote:

- quote -

> 1. My wife is starting a business (sole proprietorship) and
> she flew to another city and took a class that was integral
> to doing the business. I understand that the air fare, for
> example, should go under travel on Schedule C. Where should
> the $99 fee she paid as "tuition" for the class go on
> Schedule C? I don't see a category that fits.

If these are expenditures beFORE she starts the business,
then not fully deductible but amortized over a period of
time, e.g. 60 months.

- quote -

> 2. Depreciation. I read on the IRS site that I must
> depreciate anything that has a useful life longer than the
> current tax year. However, it seems that there should be a
> reasonable limit to this and that I can expense inexpensive
> items that may be durable. For example, suppose I buy a
> stapler for my wife's business that I use in the manufacture
> of items that I sell. Clearly, it has a useful life longer
> than a year, but depreciating a $5.00 item seems like
> overkill. How do other people handle this?

All businesses have a floor for miscellaneous items like
this. My favorite floor is 100$; others have higher
minimums.

Cheer$,
Harlan Lunsford, EA n LA

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#-1 05-14-2004, 02:07 AM

1. My wife is starting a business (sole proprietorship) and
she flew to another city and took a class that was integral
to doing the business. I understand that the air fare, for
example, should go under travel on Schedule C. Where should
the $99 fee she paid as "tuition" for the class go on
Schedule C? I don't see a category that fits.

2. Depreciation. I read on the IRS site that I must
depreciate anything that has a useful life longer than the
current tax year. However, it seems that there should be a
reasonable limit to this and that I can expense inexpensive
items that may be durable. For example, suppose I buy a
stapler for my wife's business that I use in the manufacture
of items that I sell. Clearly, it has a useful life longer
than a year, but depreciating a $5.00 item seems like
overkill. How do other people handle this?

Thanks!

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