Business Use of Home
Need total square footage of Home and square
footage used for business. NOTE: It is difficult to classify a room as exclusively used for business.
Day Care Meals
Need total (annual) number of children eating breakfast, AM snack, lunch. PM
snack, and dinner.
Business vs Hobby
If
you loose money every year the IRS may classify your biz a hobby or socializing. This would result in income being reported
as "Other Income" on your 1040, and deductions limited to Schedule A limitations.
Self Employment Tax
In
addition to income tax you pay approx. 15% tax on biz profit. WI does
not have a self employment tax.
Depreciation
For most small business purposes it may be advantageous to depreciate items purchased over
their life rather than using the deduction all at once (sec 179)
Was this your first year in business?
