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Is the tax advantage really that clear cut? You can deduct business expenses but there's self-employment tax and in some places business taxes (like the Unincor

by deet 12y ago

Is the tax advantage really that clear cut? You can deduct business expenses but there's self-employment tax and in some places business taxes (like the Unincorporated Business Tax in NYC) that can really add up.

cylinder 12y ago
In NYC the taxes are much higher on the self-employed. I asked my CPA why this is and he said "well you get more deductions." Hmm, not really, but okay, I guess NYC is expecting me to take some frivolous/borderline deductions?
- granos 12y ago
  They don't have to be frivolous. Do you have an office in your primary residence? Take the cost of that residence (rent or mortgage) * (area of office / area of residence) and deduct that. Bought new paint for that room? Deduct it. Did you get a new computer that you use for work? Deduct it. But talk to your tax professional first because I'm not one and this is not advice :)
  - mgkimsal 12y ago
    but those are just general - nothing you mentioned is specific to nyc.