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DawgPhan
BBQ Super Pro
Joined: 12 May 2005
Posts: 3444
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 Posted: May 15 2007 Post subject: |
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| for tax purposes I think that you are going to need 2 phones if you want to write any phone usage off.. They require that your first phone is your personal phone and is not deductible, but the second phone can be. |
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BBQMAN
BBQ Super All Star
Joined: 13 Jun 2005
Posts: 15475
Location: Florida
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| Posted: May 15 2007 Post subject: |
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| DawgPhan wrote: | | for tax purposes I think that you are going to need 2 phones if you want to write any phone usage off.. They require that your first phone is your personal phone and is not deductible, but the second phone can be. |
I don't believe that is entirely true. You may deduct a portion of the bill for business use.
For instance, I don't claim my entire home expenses as a write off, but I do claim a percentage for home office, and a percentage of utilities etc. I write 100% of the cell phone bill off as a business expense.
Normal diclaimer: please consult your tax proffesional ( I know I did!) 
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BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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Ranucci's Big Butt
BBQ Super Pro
Joined: 25 May 2006
Posts: 1219
Location: Charlotte, NC
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| Posted: May 15 2007 Post subject: |
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| BBQMAN wrote: | How about:
Bad (if you don't eat meat, well still give ya' the) Bones BBQ!
Nobody Beats our Meat
or my names not "Harry Nutzack"!
Please "phone for the bone" at *** *** *****
or e-mail for a meal at Harrysnutzak(don't that sound tasty).net |
Now that is funny.
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Alex
Ranucci's Big Butt BBQ
www.ranuccis.com
www.bigbuttbbq.com |
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BBQMAN
BBQ Super All Star
Joined: 13 Jun 2005
Posts: 15475
Location: Florida
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| Posted: May 15 2007 Post subject: |
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I thought it fit the theme! 
What can I say, I'm feeling creative today! 
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BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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DawgPhan
BBQ Super Pro
Joined: 12 May 2005
Posts: 3444
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| Posted: May 15 2007 Post subject: |
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| BBQMAN wrote: | | DawgPhan wrote: | | for tax purposes I think that you are going to need 2 phones if you want to write any phone usage off.. They require that your first phone is your personal phone and is not deductible, but the second phone can be. |
I don't believe that is entirely true. You may deduct a portion of the bill for business use.
For instance, I don't claim my entire home expenses as a write off, but I do claim a percentage for home office, and a percentage of utilities etc. I write 100% of the cell phone bill off as a business expense.
Normal diclaimer: please consult your tax proffesional ( I know I did!) |
just telling you what my tax professional told me. The IRS doesnt allow you to deduct a business phone if you arent paying for a personal phone.
While you can deduct a portion of the utilities and rent and things like that I was told that I needed a personal phone that I couldnt deduct any of and then a business phone that I could deduct all of...
Do you have a home phone that you dont write off? If so that would be exactly what I said was happening...you can have 1 home phone and no cell or other line and then deduct part of the home phone as a business expense. |
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marvsbbq
BBQ All Star
Joined: 15 May 2005
Posts: 6186
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| Posted: May 15 2007 Post subject: |
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I have 2 business lines...(1 required to have a yellow page add). One line is my fax line and the other is my business line. I DO use my business line as a 'personal' line as well.
This way I CAN use the same phone for both and be able to write it off too.. We DO take a SMALL percentage off this bill as 'personal use' for IRS purposes.
But as always, check with your own tax person to see what you can or can not do for YOUR business.
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Often imitated but never duplicated |
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DawgPhan
BBQ Super Pro
Joined: 12 May 2005
Posts: 3444
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| Posted: May 15 2007 Post subject: |
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| marvsbbq wrote: | I have 2 business lines...(1 required to have a yellow page add). One line is my fax line and the other is my business line. I DO use my business line as a 'personal' line as well.
This way I CAN use the same phone for both and be able to write it off too.. We DO take a SMALL percentage off this bill as 'personal use' for IRS purposes.
But as always, check with your own tax person to see what you can or can not do for YOUR business. |
again...I dont know for sure, but the IRS says that the local calls and all taxes of the first phone line at not tax deductible for a home business. They are personal expenses. You can deduct long distance calls on that first line, but not the local stuff.
There has to be some personal expense on the phone before you can deduct anything.
If you have a cell phone you can count that as your personal line. I know that is what we did since we used our home phone as the business phone and use our cells as personal. So we can deduct the entire cost of the home phone, but none of the cell phone even if we are doing business on the cell phone sometimes. |
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marvsbbq
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Joined: 15 May 2005
Posts: 6186
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| Posted: May 15 2007 Post subject: |
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Yea, I don't REALLY know how all of that works....what is allowed and not allowed "I have people" to do that for me..
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DawgPhan
BBQ Super Pro
Joined: 12 May 2005
Posts: 3444
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| Posted: May 16 2007 Post subject: |
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| marvsbbq wrote: | | Yea, I don't REALLY know how all of that works....what is allowed and not allowed "I have people" to do that for me.. |
so do I. |
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BBQMAN
BBQ Super All Star
Joined: 13 Jun 2005
Posts: 15475
Location: Florida
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| Posted: May 16 2007 Post subject: |
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Friend of the family is a CPA. She takes care of the Uncle Sam stuff!  I pay one set bill with unlimited long distance access, so maybe that's were we are having the difference in deductable/not deductable.
Get those new cards on order yet Harry? (I think they are a write off, I don't truly know?) Ok, as a business expense it is deductable! I think? 
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BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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DawgPhan
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Joined: 12 May 2005
Posts: 3444
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| Posted: May 16 2007 Post subject: |
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| here I will just post what is on the IRS website and you guys can make your own choices... |
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DawgPhan
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DawgPhan
BBQ Super Pro
Joined: 12 May 2005
Posts: 3444
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| Posted: May 16 2007 Post subject: |
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| Quote: | Personal Expenses Are Not Business Expenses
It is important for taxpayers to realize that business expenses may be deducted only if they are ordinary and necessary for the particular type of business. Personal, family and living expenses are not deductible under any circumstances. A common error is to deduct expenses for a portion of the home that is not used regularly and exclusively for business.
Example: The basic local telephone service charge, including taxes, for the first telephone line into a home is a nondeductible personal expense. However, charges for business long-distance phone calls on that line, as well as the cost of a second line into a home used exclusively for business, are deductible business expenses.
The IRS encourages taxpayers to familiarize themselves with the requirements before taking a home office deduction and to keep complete and accurate records to substantiate deductions. According to IRS research, understated business income, including underreported receipts and overstated expenses, is an area where compliance is a concern. In addition to increasing outreach and education in these areas, the IRS will also be focusing enforcement efforts, including examinations, on these issues. |
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BBQMAN
BBQ Super All Star
Joined: 13 Jun 2005
Posts: 15475
Location: Florida
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| Posted: May 16 2007 Post subject: |
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And here I thought this thread was about business card design?
Maybe lets start a new thread on common business deductions! Get-r-done Dawg!
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BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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DawgPhan
BBQ Super Pro
Joined: 12 May 2005
Posts: 3444
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| Posted: May 16 2007 Post subject: |
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| BBQMAN wrote: | And here I thought this thread was about business card design?
Maybe lets start a new thread on common business deductions! Get-r-done Dawg! |
Yeah that is how things work...conversations are often fluid...anyway...some tax tips would probably help out some of the folks starting new businesses... |
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marvsbbq
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Joined: 15 May 2005
Posts: 6186
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| Posted: May 16 2007 Post subject: |
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I thought this forum was to talk about anything 'barbecue related'....Gee where did we go wrong???
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BBQMAN
BBQ Super All Star
Joined: 13 Jun 2005
Posts: 15475
Location: Florida
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| Posted: May 16 2007 Post subject: |
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| marvsbbq wrote: | | I thought this forum was to talk about anything 'barbecue related'....Gee where did we go wrong??? |
Tax matters are acually BBQ related in our business Marv! Good topic for catering I'd say!
I don't usually offer that type of advice myself because I'm not the resident CPA. That's why I hire one!
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BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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Harry Nutczak
BBQ All Star
Joined: 01 Mar 2007
Posts: 8558
Location: The Northwoods
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| Posted: May 16 2007 Post subject: |
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agreed, all of this thread is definitely BBQ-catering related.
we also have an unlimited long-distance package also, and DSL tacked onto that. I was considering Vonage as a business line, but the nearest prefix to us in the Vonage system is 85 miles away, and it would be a Long distance call for anyone in this area that tries to call me. So that is no good either. Unless I do an 800 number
I do not know what the accountant does or doesn't use for deducts, but we have been good with the IRS. I do know a portion of the home is considered business use.
And as for cards, I need to check the "business only" e-mail to see if he sent a proof copy over yet.
As long as we are on deductions, I might mention that every trip to the bank, & post office mileage is used as a legal and acceptable deduction.
My upcoming trip to Milwaukee & Chicago are going to be deducted, I was told to save any & all receipts no matter how small, even if it is just for a cup of coffee.
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Just remember that the toes you may step on during your climb to the top will also be attached to the a$$es you'll be forced to kiss on your way back down! |
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BBQMAN
BBQ Super All Star
Joined: 13 Jun 2005
Posts: 15475
Location: Florida
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| Posted: May 16 2007 Post subject: |
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Great advice!
Food and drinks are 50%, and the milage deduct is a good one as well.
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BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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