From: Mark Lasarko (mlasarko@co.ba.md.us)
Date: Fri Jan 20 2006 - 17:08:27 GMT-3
It helps if you have *something* you can show as income to start.
However, that is not a requirement - especially upon startup.
Many companies, large and small alike;
Operate at a loss for years before ever making a profit.
You may or may not get a 1099 from a client when doing consulting.
Different companies handle this differently.
I have some that do and some that don't, but I still claim it all.
AFAIK anything a company pays you for the year above $599.99
($600.00 or more) makes you a candidate to receive a Form-1099,
Which is what you tally on your Schedule-C.
Nothing is to say that if you started a business last year,
but did not make any $'s, you would have a "loss" due
to training, setup costs, etc...
If you don't have any 1099's that does not mean you did
not make any $'s. You could have made $250.00 from each
of three clients, $750.00 total for the year.
Those individual totals do not qualify for a 1099.
Then you went to RTP for a seat,
A hotel for a night or three, some mileage or airfare.
Next thing you know you're at a net loss...
The sales and tax use license, website, and P.O.Box are just
My suggestions of ways to make the business more legitimate.
It shows you are making *some* effort at actually doing business,
Even though you might be spending more time studying,
To further your business, of course.
Does that make sense?
Don't forget that if there is a room/office/area in your home,
dedicated to business, that a portion of other things
(gas, electric, Internet service, and so on), can also be deducted.
This percentage roughly matches the percentage of sq. feet
dedicated for business purposes in relation to the
total sq. footage of your residence. This requires
you to do some confirmation as YMMV from state 2 state;
But it's another consideration, motivation to startup, etc...
The bottom line is you really don't have to have anything to start,
Except for a plan.
Keep it simple, but keep it real.
Talk to someone with a Sub-S, Inc., LLC, etc...
Ask them if they like the extra paperwork.
(more processor overhead)
Then go find a couple places to make a few bucks on the side!
Best,
~M
>>> John Matus <John.Matus@tokiom.com> 01/20/06 2:28 PM >>>
i'm assuming that you have to already have this set up BEFORE you can
actually reap the rewards of having a business.............
can i just claim on schedule C an income of, lets say $200, and then be
able to make all these deductions, or do i have to have the tax license and
dba and what-ever else in order to do this?
Regards,
John D. Matus
Technical Support / PAS
Fujitsu Consulting
626-568-7716
John.Matus@tokiom.com
"joshua lauer"
<jslauer@hotmail.
com> To
Sent by: "Mark Lasarko"
nobody@groupstudy <mlasarko@co.ba.md.us>,
.com <swm@emanon.com>,
<John.Matus@tokiom.com>
cc
01/20/2006 11:07 <ccielab@groupstudy.com>,
AM <nobody@groupstudy.com>,
<jmatus@pacbell.net>
Subject
Please respond to Re: ccie tax write-off's
"joshua lauer"
<jslauer@hotmail.
com>
you can also apply for an LLC for about 500.00 or so...just make up some
goofy name and your ready to rock and roll.........
----- Original Message -----
From: "Mark Lasarko" <mlasarko@co.ba.md.us>
To: <swm@emanon.com>; <John.Matus@tokiom.com>
Cc: <ccielab@groupstudy.com>; <nobody@groupstudy.com>; <jmatus@pacbell.net>
Sent: Friday, January 20, 2006 2:03 PM
Subject: RE: ccie tax write-off's
> Yeah, what Scott said :-)
> There is not much you have to do to get started.
> Think of a name and get a Sales & Tax use license.
> Even if you're only consulting;
> It does not hurt to file "$0.00" in sales now and then.
> I also recommend a P.O. box and/or a simple website,
> ...if you can afford it.
> (Again, it's another write-off either way)
> Something to further substantiate the business)
> HTH,
> ~M
>
>
>>>> "Scott Morris" <swm@emanon.com> 01/20/06 12:52 PM >>>
>
> You have to start a business sometime, right? Ever do any consulting on
> the
> side? There ya go. Just declare some income too, at least a little. :)
>
> There's no rule the IRS has about you moonlighting as an independent even
> though you have a full time day job.
>
> Scott
>
> -----Original Message-----
> From: nobody@groupstudy.com [mailto:nobody@groupstudy.com] On Behalf Of
> John
> Matus
> Sent: Friday, January 20, 2006 12:42 PM
> To: Mark Lasarko
> Cc: ccielab@groupstudy.com; jmatus@pacbell.net; nobody@groupstudy.com
> Subject: Re: ccie tax write-off's
>
> hi mark,
> thanks for responding!
>
> schedule c, eh? my situation is that i'm a W-2 employee, so i'm not
> sure
> how i could go about doing this. i'm assuming that you have to have a
> business already formed in order to do this <???>
>
>
> Regards,
>
> John D. Matus
> Technical Support / PAS
> Fujitsu Consulting
> 626-568-7716
> John.Matus@tokiom.com
>
>
>
> "Mark Lasarko"
> <mlasarko@co.ba.m
> d.us> To
> Sent by: <ccielab@groupstudy.com>,
> nobody@groupstudy <jmatus@pacbell.net>
> .com cc
>
> Subject
> 01/20/2006 07:53 Re: ccie tax write-off's
> AM
>
>
> Please respond to
> "Mark Lasarko"
> <mlasarko@co.ba.m
> d.us>
>
>
>
>
>
>
> Greetings John & GS,
>
> ...Write off CCIE stuff? Absolutely!
>
> I have had a business established since '99 as a sole proprietorship.
> Most of my reasoning at the time was to offset training expenses.
> See, I had full-time work I was sure to owe taxes on.
> In the meantime I began to see the test fees, books, etc... accrue.
> That was just CCNA/DA, Check Point, Nokia, CNE, and MCSE stuff back then.
> I was barely looking at the prices of the CCNP/CCDP books and exams; The
> bottom line was that I wanted to study more than my employer wanted to
pay
> for.
> So the only logical thing to do was find a way to pay for it, but get it
> back in the end!
>
> Little did I know :-)
> Back then I had no idea how many $'s would fall...
> (into the CCIE [money pit | wishing well]) A couple years later I have a
> full rack, More books than I could ever read, Materials from vendors, all
> that costly stuff :-) And some comfort knowing my efforts are
> "deductible".
>
> My best recommendation:
> Go for the biz, schedule C, and the loss in your business income, if any,
> can be beneficial, even if the taxes are taken from you or your spouse's
> job, if married and filing jointly. (For those spending the family
savings
> on
> training!)
>
> Just try and document it all as best you can.
> Travel down to the mile, every toll or meal expense on the way.
> Maybe even get a separate credit card or open a business account just for
> these things.
>
>
> And if you think you might ever need to resell any hardware be sure and
> get
> your state's sales and tax use ok'd sooner instead of later.
>
> HTH,
> ~M
>
>
>>>> "John Matus" <jmatus@pacbell.net> 01/19/06 11:37 PM >>>
>
> does anyone know if you can write off CCIE stuff on your tax returns?
i'm
> not quite sure where or how you would do it, but hey..... it is
> "continuing
> education".
>
>
> Regards,
>
> John D. Matus
> MCSE, CCNP
> Office: 818-782-2061
> Cell: 818-430-8372
> jmatus@pacbell.net
>
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