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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We always have a business going -- first it was consulting, then freelance writing, now long term rentals. [b]You can write off a ton of expenses if you own a business.[/b]

Real estate has worked for us. We have 5 rentals now, no mortgages. Worked hard to get here, but we're late 50s and the passive income will be pretty sweet in retirement.[/quote]

Long-time business owner here.  The bolded is mostly nonsense.  To write something off, you first have to spend the money to purchase it.  In other words, you spend $1 to get back $0.30 later - that's not exactly a fast track to getting rich.

And that $1 has to be spent on business expenses.  It's not like you can just start deducting all your personal expenses through your business.  There are some exceptions, like getting the Section 179 deduction when you buy a large SUV.  But, really, the reasons businesses can be lucrative are that you own 100% of the upside, can leverage employees, and businesses are taxed favorably (QBI deduction, etc.).[/quote]

DP but it’s not nonsense for the fields the PP mentioned, which are ones where work can be done from home. If you do that, [b]you can deduct the prorated amount of your mortgage payment [/b]and utilities based on the size of your home office, equipment you use for your work (like laptop and cell), and miles you drive for work (most relevant for the rentals). You are paying for those things anyway but now they reduce your taxable income.[/quote]

There are strict rules on taking the home office deduction that most people do not follow and it’s ripe for audit. Most tax advisers discourage it. [/quote]

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