But, if I do that, would I have to fill out Schedule C for self-employed?”=========>Correct as long as the amount on SCh C line 29/ 31is $400 or exceeds $400 you need to fiel return and also as logn as the amount on Sch SE line 2 / 3is $400 or exceeds $400 then youmust pay self employment tax to the IRS.
“And if that is considered self-emplyed, does that mean I have to pay employee & employer taxes?”==========>Correct;also, if you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1K or more when you file your return.
“And if THAT has to be done, would I be able to "write off" things for being self-employed? For example, he coaches football and basketball. The school is 2 1/2 miles away.”==> The time you spend driving back and forth between your home and your business is considered commuting, and the expenses associated with commuting (standard mileage or actual expenses) are not deductible as a business expense.
“Would we be able to deduct the mileage of 5 miles per day x 6 days per week x 9 months? “==No commuting expenses are deductible
“Or the roundtripmileage for football camp (Michigan to Indiana)?”========>Biz related travel expenses are dedcutible by either standard mileage or actual expenses whichever is larger.
“The cost of camp? The conference (not paid/reimbursed by the school) in Pennsylvania, with 2 nights hotel and meals? “===>Travel expenses are among the most common business expense deductions. However, this type of expense is also one of the most confusing;you can deduct ONLY 50 percent of the cost of meals when traveling. You can also deduct hotel expenses, air, rail, and bus fares, local transportation costs for taxi fares or other transportation between the airport or station and a hotel, from one customer to another, or from one place of business to another, and tips incidental to the foregoing expenses,
“The coaching dvds? The dvd/recorder to make copies of games for other coaches of other schools when they "exchange films"? The 500 rewrite discs to make the films? “=====>You can deduct biz related(exclusively used for biz not also for personal use) equipment/supplies exp on Sch C;you need to depreciate the dvd recorder for I guess five years; however, The IRS assumes that business equipment in a non-home business is being used mostly for business purposes. But such equipment in a home business - computers and peripherals and cell phones, for example - may be used for personal business. This property is called "listed property" - equipment and vehicles that can be used for personal purposes and for business purposes. The IRS has specific rules on taking a business deduction or depreciation for listed property, because of the possibility that people will try to misuse the deduction.
The case of lysol we purchased so the kids could disinfect their equipment daily? How about the team dinners and pizza parties? The varsity patches and trophies?”=========> Business expenses are usually deductible if the business is operated to make a profit. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. To be deductible for tax purposes, expenses incurred for travel, meals, and entertainment must be ordinary and necessary expenses incurred while carrying on your trade or business. Generally, you also must show that entertainment expenses (including meals) are directly related to, or associated with, the conduct of your trade or business.
“I think we've actually put out more money than what he was even paid!”===>Then as long as deductible biz related expenses exceeds biz income, then you can claim yur biz losses ; the IRS allows entrepreneurs to deduct a portion of their business losses on their income tax returns. These tax filers can use the amount of their business loss to offset other income for past or future years.You have a net operating loss when the amount of their business expenses for the year exceeds the amount of income they generated. Net operating losses are not eligible for a deduction in the year they occur. However, you can choose to carry the losses back two years or forward 20 years or you can make use of both options by carrying the loss back and then forward until it is used up. Youcan also decide to waive the carryback period and only carry their net operating losses forward for 20 years or until they exhaust the entire loss. The amount that can be deducted each year is limited to the loss in excess of the your MAGI for each future tax year. You who claim a net operating loss should keep your supporting documentation for at least three years after the carryover period runs out.
Please visit the IRS webpage her for more info;
Publication 535 (2011), Business Expenses
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