typical tax approaches of flippers

[RELinda]

Deduct all of it, all day long. so you only pay taxes on whats left after you spend the rest of your money.  Pay taxes on whats left after paying your bills versus the government taxing you before you get your money THEN pay your bills?llll lets think hmmmmmmmmm, I think I will stay self employed because my boss is awsome!!!!!!

[jdeity]

so books related to real estate investing are definitely a legit tax deduction?

[RELinda]

Yes, keep receipts, under education.  any boot camps, etc. also books, tapes,office supplies, anything you need to make money and do business, but Im not an attorney or CPA so find a good one, and NOT H & R Block

[jdeity]

i'm likely going to be my own accountant.  

[DannyTheGreat]

i'm likely going to be my own accountant.

You have a lot to learn before you should come close to considering that. Maybe you can act as your own bookkeeper but acting as an accountant you will lose more in fines and/or time in jail than it would cost you for a good CPA.

[xDennis]

The tax benifits we have are that we are running a home based business.

You can fill out a form C for self employed, that opens up a lot of areas you can write thigns off..

Golf , Eating out, Supplies , car , mileage when on driving for dollars , etc etc etc.

I'm not a CPA so contact them first, but I've been involved in a homebased business for years where I take advantage of a bunch of goodies!

Good luck!

[jdeity]

seems you can deduct your 'home office space', as long as it is used solely for your business.  don't quote me on that tho.

also moving expenses, if not paid by your business.  if you're self employed it's a stiffer requirement