How far back can you do your taxes

how far back can you do your taxes

Business Taxes and Legal Issues >How far back can you deduct business expenses?

JoCarole 12:46 PM 03-26-2009

For all the VA tax experts - I am hoping someone will know the answer

Does anyone know how long you can hold onto business expenses before you will lose the deduction?

Do they have to be declared in the same tax year when the expense was incurred? Or can you hold onto them until your business starts actually making money? I am asking because my accountant told me to hold them so I did.

But I just was looking at the 2009 Stimulus Act at the "Longer Carry-Back Period for 2008 Losses" which deals with carrying back just 2008 taxes. Nothing was said about prior years which is what I am referring to. Now I am afraid I will just lose them because I waited.

Thank you in advance

Jo-Carole

Tess 09:31 PM 04-05-2009

Jo-Carole, I'd really recommend you talk to a CPA. We hired one this year and it was the BEST thing I've ever done for our business.

In fact, we are getting a refund - which is beyond the beyond in terms of incredible.

Not only can your CPA help you determine what is deductible but there are all kinds of things you probably don't even realize you can take on your business return.

For instance, and this may have been obvious to everyone else - I didn't ever think to take PayPal fees as a deduction. It's a banking expense, but it just didn't occur to me.

Logic tells me you probably have to take a business deduction the same year the expense is incurred but you never know - pay an expert to walk you through that part and you may just wind up

saving more than the CPA costs you.

RebeccaT 11:21 PM 04-05-2009

Paypal fees are a deduction. Holy spit! When I was asked if I had any other fees. I didn't think about Paypal stuff. Thanks Tess!

JoCarole 05:06 AM 04-06-2009

Originally Posted by Tess :

Jo-Carole, I'd really recommend you talk to a CPA. We hired one this year and it was the BEST thing I've ever done for our business.

In fact, we are getting a refund - which is beyond the beyond in terms of incredible.

Not only can your CPA help you determine what is deductible but there are all kinds of things you probably don't even realize you can take on your business return.

For instance, and this may have been obvious to everyone else - I didn't ever think to take PayPal fees as a deduction. It's a banking expense, but it just didn't occur to me.

Logic tells me you probably have to take a business deduction the same year the expense is incurred but you never know - pay an expert to walk you through that part and you may just wind up saving more than the CPA costs you.

Thanks Tess, you're right, i was just waiting till I was actually started making money before hiring one. This is something I have to work on now.

I didn't realize that about Paypal either

I take the business deduction for the purchase but I never thought about PayPal's commission.

Jo-Carole

aztlandreams 04:05 PM 05-09-2009

There are so many tax breaks out there for us. Definitely seek a CPA for advise they will get you on the right track and save you a lot of money and headache which would outway the their cost.

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Category: Taxes

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