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Quick tax question

Discussion in 'Other Off Topic Forum' started by Mera, Jan 18, 2008.

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  1. Mera

    Mera Formula Junior

    Aug 13, 2005
    768
    Milwaukee, WI
    Full Name:
    Rodney Dickman
    #1 Mera, Jan 18, 2008
    I do a home based business. Part of my gas and electric bills etc can be written off. What year do I write them off in? If the bill has a total charge on 12-27-07 but I pay in in 08 what year do I write it off in?

    I've been doing this for about 15 years now. Not sure if I have been doing it correct.

    Thanks
    Rodney Dickman
    1990 348 TS
     
  2. PeterS

    PeterS Five Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    52,240
    Goodyear, AZ
    Full Name:
    PeterS
    #2 PeterS, Jan 18, 2008
    Let it go and find something else to write off in it's place that is deemed legit. If you get audited, bring it up then and work towards back credit. I have never taken the office deduction, etc. Just don't want that flag raised. I have nothing to hide, but would never have the time to deal with preparing for an audit!
     
  3. wax

    wax Five Time F1 World Champ
    Lifetime Rossa

    Jul 20, 2003
    52,426
    SFPD
    Full Name:
    Dirty Harry
    #3 wax, Jan 18, 2008
    Ah, he's been doing it for 15 years. I did it for 10, myself. It's legit, man! It's not just you, Pete - year after year I can't believe how much irrational fear of IRS there is on F-Chat. Take a look at the 1099 and see what you've been missing out on, peeps.
    _____

    Write-off occurs in same year actual out-of-pocket expense occurs.

    Your 12-27-07 bill paid in 2008 will be deductible in the next Tax Year - 2008.

    On the flip side -

    If you made your Jan. 1, 2008 mortgage payment by the end of December, 2007; you can deduct the interest now, against 2007's income.
     

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