I tell you what I did do with 30k extra income this year (my consulting biz pulled in 30150, just got all my 1099’s).
Pay off 12k boat loan. (one of the dumbest purchases I’ve made, but now it’s paid for).
Put a good down payment on my GTO. Needed to replace the wife’s car anway.
Put the rest in savings since the wife is taking 12 weeks maternity and NYS pays about a 1/3rd of what she makes normally.
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having your own consulting business rocks. buy the car with the extra money from it, AND write it off. Soon as I finish my MBA im incorporating, paying taxes is overrated.
having your own consulting business rocks. buy the car with the extra money from it, AND write it off. Soon as I finish my MBA im incorporating, paying taxes is overrated.
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Yeah, my tax guy said a portion of the car will be a write off. My taxes are a mess this year because the consulting thing is a side business. I work a normal 8-5 job as well. Since I use the car to get to that regular job it’s not a 100% business car. Shit like this is why I gave up on turbotax this year and hired a pro.
After seeing the tax side of things, I can see what so many companies are doing so poorly on paper. The worse you do the less you’re taxed, so look as bad as possible on paper. :snky:
Haha I can’t wait to get rolling on my MBA so I can know what the fuck you guys are talking about.
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Going a little OT here but… I have a 4 year degree from buff state. In computers, experience > school. It also goes back to the “don’t burn bridges” advice. 3/4ths of my consulting has gone to previous employers.
The tax stuff you just have to find someone you trust and believe what they say. I turned my downstairs into an office. Now 1/3rd of my mortgage, heat, electric, water etc are all business expenses. When I go out to get groceries and essentials on the weekend, I make sure something I buy is business related. Stamps, paper, pens etc. Now the mileage is a business expense. Go out to dinner? Make sure to talk at least a little about your business. If < $75 the government doesn’t even require a receipt. If > $75 they just require the receipt and a log. I have a bunch of dinner receipts with names and business ideas jotted on the back. My generator I bought during the storm, yep, bought that because I had to get my computers back online to keep working. Business expense. Cell phone and cable modem… I wouldn’t pay for either if I didn’t need them for my business, so that’s a business expense. The tax guy wants at least 12k in expenses on the business side, so I’ll be paying tax on 18k, not 30k. I’ve got some Amvets sheets (just a heads up, they’re nice enough if you bring a decent amount of stuff they simply sign the inventory sheet and hand it to you blank, letting you fill it out at home) and some other misc deductions, so hopefully I’ll be pretty close to that 12k. I went to a couple conferences on web dev, so the mileage and expenses on those was obviously a business expense too. When I first went to see my tax guy to ask about paying in quarterly (which I had to do for state) he gave me a PILE of sheets to track all the stuff I should be deducting. It’s pretty interesting, and eye opening to see how businesses pay taxes.
I wouldn’t go nuts on the deductions without an experienced tax guy to look everything over. They’ll know what will put up flags and what won’t. No one wants an audit.
UB. I went there for undergrad, great business school, nationally recognized program, blah blah blah. Plus it’s cheaper than, say, Conisius. Not that it matters since ultimately Praxair will pay for the whole thing.
I’m doing the Professional MBA program, which is tailored for full time workers.
I would put as much as I could into my 401k so I wouldnt get taxed for the full 30k then spend the rest on some bills. I think the limits for 2007 are $15500 for people under 50
