In today’s episode, I’m diving into the topic of startup expenses, the deductions available for new businesses and some of the benefits the tax code provides to new businesses. I give examples of qualifying startup expenses and sharing some information on when you can deduct these expenses on your taxes.

Listen to this episode to get helpful guidance on taking advantage of tax deductions available in the early stages of a new business.

Also mentioned in today’s episode:

• What are startup expenses 8:00

• What’s included in the startup expenses according to the IRS 10:05

• When can you deduct your expenses on your taxes 12:30

If you enjoyed this episode, please rate, review and share it!

Links:

More Sunlight episodes to help you start your business:

• Episode 20: Pricing and Business Lessons

• Episode 44: S Corp Mistakes That will Cost You Thousands

• Episode 50: The One Thing You Must Do in Your Business

• Episode 67: Your Business Already Started

• Episode 68: The Right Step at the Right Time

Free 20 Minute Course on Filing your BOI Report for LLCs: www.sunlighttax.com/llc

IRS Proof Your Business Deductions

Today, I’m talking about the tax laws related to distinguishing between a hobby and a legitimate business when you’re a creative professional. I’m also explaining the IRS's view of profit motive as the key factor and discussing how you can determine whether you have a business or hobby.

Join me in this episode to get some advice and tips on how you can prove profit motive and avoid being wrongly classified as a hobby by the IRS.

Also mentioned in today’s episode:

• Why profit motive is so important 5:35

• The IRS’s nine-factor test for determining if a creative hobby is a business 19:35

• The hobby loss rule and how it’s applied 33:07

If you enjoyed this episode, please rate, review and share it!

Links:

• IRS audit technique guide: https://www.irs.gov/pub/irs-pdf/p5558.pdf
• https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes
  
  
• The Sunlight Podcast Episode 67: Your Business Already Started
  
  
• An Audit Nightmare Turned Artist Victory: An Interview with Susan Crile
  
  
• Learn more about Money Bootcamp

In today’s episode, I’m revisiting an important topic and giving you an update about the Corporate Transparency Act, which aims to identify owners of LLCs and prevent financial crimes.

I’m providing an update on information about the requirements of filing a Beneficial Ownership Information report, including the deadlines and penalties and how you can file.

Join me in this episode to get all the timely information about this act and learn how you can get step-by-step video directions on filing for your LLC!

Also mentioned in today’s episode:

• Why you should be aware of scams when it comes to filing 6:00

• Why the Corporate Transparency Act was passed and why it’s important 9:05

• The deadlines for filing and the penalties 14:48

If you enjoyed this episode, please rate, review and share it!

Links:

Free 20 Minute Course on Filing your BOI Report for LLCs: www.sunlighttax.com/llc

IRS Proof Your Business Deductions