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Thread: Tax Question - Business Expenses

  1. #1
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    Tax Question - Business Expenses

    Quick question about business expenses for a sole proprietor:

    My girlfriend and I live together. She has a normal job with a normal company. I work from home as a Freelancer, a sole proprietor. Is it possible for her to deduct business expenses from her taxes? For example, could she purchase a computer, give it to me for my business, and then deduct the expenses from her taxes?

    I know that no one here is an expert. Just thought I would ask around for a general idea of the answer.
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  2. #2
    Former Employee of Satan Napalm's Avatar
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    Get a good tax accountant. They know all the tricks of the trade. They're not cheap, but well worth the money.
    Never underestimate the power of stupid people in large groups

  3. #3
    Lunch is for wimps. erova's Avatar
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    well, i'm no cpa, just to get that out of the way, but she just can't buy a computer and tell the IRS it's being used for business and presto, it's time for a deduction.

    she could lease it to you so that she retains ownership, and then she could write that off, but then i don't know the ins and outs of depreciation if something is also leased.

    honestly it would be a lot easier and lot less of a hassle if you just bought your own equipment.

  4. #4
    Senior Member dlowe93's Avatar
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    Re: Tax Question - Business Expenses

    Originally posted by Tw4win
    Quick question about business expenses for a sole proprietor:

    My girlfriend and I live together. She has a normal job with a normal company. I work from home as a Freelancer, a sole proprietor. Is it possible for her to deduct business expenses from her taxes? For example, could she purchase a computer, give it to me for my business, and then deduct the expenses from her taxes?
    The short answer is "probably not". (At least with regards to US federal income tax). Since you two are not married, your income and taxes are completely separate, and your business income and taxes can't be blended with her personal income and taxes.

    The only way i could see it working is if she was a legal business partner, and purchased the equipment as a business expense for the company itself.

    Again, talk to an accountant. I think the feds won't really care if your defence for tax evasion is "well, some dude on Flashkit told me so..."

    dlowe93

  5. #5
    Lunch is for wimps. erova's Avatar
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    Re: Re: Tax Question - Business Expenses

    Originally posted by dlowe93
    I think the feds won't really care if your defence for tax evasion is "well, some dude on Flashkit told me so..."

    yeah, you're not kiddin...

    postin from sing sing is a real pain in the ass...







    literally

  6. #6
    Senior Member dlowe93's Avatar
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    Re: Re: Re: Tax Question - Business Expenses

    Originally posted by erova
    yeah, you're not kiddin...

    postin from sing sing is a real pain in the ass...
    And they don't even have broadband, which is cruel and unusual punishment if i ever heard of it.

    d.
    dlowe93

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