taxes - soaked for extra $

[Joel Rappaport]

PatWilbur@aol.com wrote:
>
> James Grebe wrote:
>
> >I don't know about you guys but I got soaked for another
> >> thousand extra this year towards last year.
>
> For what? By any chance, was it a penalty for not making quarterly estimated
> tax payments? You are supposed to send quarterly payments towards your tax if
> you are self-employed.
>
Another thing we have to watch out for is claiming business use of part
of the house for "office in the home."  Relatively recent tax court
cases have held that the "office" has to be not just where we do
paperwork and make appointments, but has to be the principal place of
business.  For us, that is where we tune the pianos.  We don't do that
in OUR houses.  Nor do we do rebuilding in the room that used to be our
dining room but now has the computer, printer, fax/answering machine,
office supplies and so forth.  So unless customers bring their pianos to
our (former) dining room for service, we can't claim office in the
home.  If they catch you, look out!

Joel Rappaport
Information Given for Free--Refunds Available
--Don't rely on me for tax advice; I am not a CPA nor do I play one on
TV--