Post #1578804

2026-02-03 15:43 UTC

Pro tips: Many jurisdictions don't require you to have a business license if your revenue is under a certain threshold and the work you do is unregulated. Basically, you can just decide you own a business at any time without filling out any paperwork. Housecleaning, auto mechanic, and IT consulting businesses aren't regulated and can be used to justify 90% of common purchases. A YouTube channel is a business and can be used to write off anything you make a video about. Any major purchases you made throughout the year can be declared as an asset of your business. If you say you only use it for business 50% of the time, it's practically impossible for anyone to disprove. Also, 50% of the money you spend on those major purchases can be declared as a business loss, which further reduces your tax obligation. So, let's say you bought a PC and a 3D printer this year. You can decalre both as assets belonging 50% to your business, declare half the cost as a business expense, and declare no income from the business. You can also declare half of your gas purchases as being for your business. You'll get a credit for the asset, and a credit for the "business loss." Basically, you can create a company that has your home address as its HQ, say it didn't earn any money, but you invested in it. Then, declare ordinary purchases as assets and investments into the company by saying you use them for business 50% of the time. There's no requirement to have a business license before telling the IRS you have a business. There's no requirement to run a business "well" and there's no penalty for running a business badly. Receipts aren't required to declare assets or losses, but you may need them if you're audited. You're unlikely to be audited due to the 50% declaration. If you are audited and you have receipts, you're covered. Disclaimer: I'm not a tax professional and this isn't advice.

Replies (9)

@calcopiritus@lemmy.world 2026-02-03 16:13

I fell like the disclaimer should really be at the top. Specially because it is very geographically dependant and this is the internet.

Open ##1578885
@Wiz@midwest.social 2026-02-03 22:20

(I'm not a professional and this is not tax advice) However, I have a home business pulling in a few thousand a year. About business losses, I think you're partially right. The IRS has a tile that you need to show that you're trying to make a profit, despite losses. One of the ways they do that is showing a profit over the course of a few years. (Maybe 3 out of 5 years? My memory is foggy.) But if you don't seem like a business, then you are only allowed to deduct up to the amount that you earn. But yeah, year one of a business, you can definitely take a loss. And why not? The IRS is short-staffed so fewer audits.

Open ##1578888
@boonhet@sopuli.xyz 2026-02-03 17:51

I am also not an accountant, but in my country even a failed business project is still a business project. E.g you run an IT consultancy and suddenly decide you need to do something with AI. Wellll now that gaming PC with a really over the top GPU is actually a business purchase because you NEED that VRAM. AI project didn't do all that well? Oh well, shit happens. Keep the PC tho, maybe you'll need it for another project soon. Home office is another fun one. In my country, you have to decide what % of different purchases are for business vs living use, for tax-free expense compensations. But the interesting thing is, you can go really in depth with that. 20-40% of your toilet paper could be business usage reasonably, depending on what percent of awake time is spent working vs not working.

Open ##1578889
@cheesybuddha@lemmy.world 2026-02-03 20:24

I do programming as a hobby, and it's not out of the question that some day I'll make something that will be sold. Can I claim my gaming PC and my homelab as business expenses? As well as my electricity and intenet?

Open ##1578890
@boomlandjenkins@lemmy.world 2026-02-03 18:52

The 2025 Big Beautiful Bill lets you write off 100% of the expense on the year you purchase it, instead of depreciating it over several years. Make big purchases, pay less tax dollars to this government. Disclaimer: I am not an accountant or financial advisor, do your own homework to see what qualifies in your situation.

Open ##1578891
@Frigidlollipop@lemmy.world 2026-02-03 20:58

I feel like this is all well and good until you need insurance. If you damage something and get sued without insurance/LLC, they're suing you directly instead. Dicey territory depending on what you're being sued for.

Open ##1578892
@Sabata11792@ani.social 2026-02-03 16:15

I declare my self an IT consultant. Now what?

Open ##1578894
@BarneyPiccolo@lemmy.today 2026-02-04 16:24

Not where I'm from. If you have a business in Florida, you must register with the state (about $130 a year), and the county (about $100 a year), and there's state licensing, depending on your business, and that's all over the place, but figure $350 a year. There's lots of other charges that will come up, too. Florida's hand is always out. And then you have to sign up with the Department of Revenue and submit a monthly sales tax report, even if you don't collect sales taxes. Ironically, the state border sign to Florida says "Welcome to the Free State of Florida!" where NOTHING is free.

Open ##1578895
@TractorDuffy@lemmy.world 2026-02-03 23:09

shit I should have claimed my laptop

Open ##1578896