I have a new Property Management and Property Maintenance businesses. My question is in the way of keeping reciepts and what benefit they will give me.
The Property Management Company I am (1099 employee). The Property Maintenance is LLC of mine.
Questions:
How long should I keep the reciepts for?
How do the wright-offs work? (Can someone put some fictious figures on how the numbers work)
Is there a difference in the wright-offs between these two companies, one where I am a 1099 employee and the other where it is my own LLC?
yes keep your reciepts - you should really keep your bank statements and put your receipts with them - track everything.
yes there is a difference between 1099 in one company and LLC taxation. you’ll get a Schedule K-1 for yourself/partners from LLC and LLC will file a 1065.
it’s write offs or deductions - not Wright offs just to clarify :biggrin
deductions include a bunch of different things like:
equipment
entertainment
travel
advertising
etc.
items like tools or computers, equipment and such is depreciated over time and this can be claimed in different ways, depending on how your CPA DOES YOU TAXES.
i bolded that for a reason. don’t waste your time trying to figure out the details of how to do your taxes. get familiar, very familiar with how taxes and deductions work overall - then let a competent CPA handle the rest.