Quixtar Tax Deductions while on I-485/AOS

[icebreaker74]

I am currently on I 485 pending stage. My wife is also a secondary applicant and is currently on EAD (alongwith me).

I recently started Quixtar Network Marketing business. My question is:

A) Can I take the Small Business Tax deductions for this year, or is it better to wait till the GC is approved ?

i.e., what I mean is that people generally deduct things like the following as "BUSINESS LOSSES" :

(1) Partial rent payments
(2) Car Mileage @ $0.37 per mile (Business usage only)
(3) Partial utilities payments (electric/gas/water)
(4) Business lunches - Food and drink expenses (not for self or spouse, but for the new people you might meet as part of business expense)
(5) Business Telephone expenses
(6) Purchase of computer

I ask this since when we get an RFE, we are asked to take the tax returns to the office. So, do they scrutinize the returns and ask why I have a small business when I am only supposed to work in the field which I applied Labor Certification?

B) Technically, my wife can work in any field under EAD. So can I do the same business under her name and take the deductions?


C)This article gave me the creeps yesterday:
http://biz.yahoo.com/ap/040107/irs_restructuring_6.html

Let me know.
Thanks
Ice



WAC03049****
ND 11/29/2002
FP1 Feb 2003
Applied for second AP

 

[tyzh]

I think you can run business under EAD. But make sure you can show that you still have enough time left for the 9-5 job on file.

As for tax deduction, be careful with the partial rent and utility, espeically when it's in your residential house and you are only part time.

 

[saigc]

Originally posted by icebreaker74
I am currently on I 485 pending stage. My wife is also a secondary applicant and is currently on EAD (alongwith me).

I recently started Quixtar Network Marketing business. My question is:

A) Can I take the Small Business Tax deductions for this year, or is it better to wait till the GC is approved ?
it depends on your company structure - corporation, llc or s-corporation etc. check with good business lawyer and cpa. DONT EVER MINGLE business money and your personal income. it will lead to serious complication later.
i.e., what I mean is that people generally deduct things like the following as "BUSINESS LOSSES" :
many of the points listed below are NOT business losses but they are operating cost in corporation law point of view.
(1) Partial rent payments
(2) Car Mileage @ $0.37 per mile (Business usage only)
(3) Partial utilities payments (electric/gas/water)
(4) Business lunches - Food and drink expenses (not for self or spouse, but for the new people you might meet as part of business expense)
(5) Business Telephone expenses
(6) Purchase of computer

I ask this since when we get an RFE, we are asked to take the tax returns to the office. So, do they scrutinize the returns and ask why I have a small business when I am only supposed to work in the field which I applied Labor Certification?
as long you work for the sponsoring employer then you should be fine. issues is that your business should not be substantially different area like you had your labor in software engineer and doing a business like grocery or video rental store which will trigger a red flag.

B) Technically, my wife can work in any field under EAD. So can I do the same business under her name and take the deductions?
what do you mean? you have not legally registered your company in your name? provide more details about your company and legal structure and who legally holds it

C)This article gave me the creeps yesterday:
http://biz.yahoo.com/ap/040107/irs_restructuring_6.html

Let me know.
Thanks
Ice



WAC03049****
ND 11/29/2002
FP1 Feb 2003
Applied for second AP