question about taxes?

Raquel--

First you need to know that you file a tax return to correctly report the facts, not adjust the facts to increase your refund. It sounds like you are trying to qualify for the Earned Income Credit, by increasing your profit by not showing all expenses. In fact, that's breaking the law. The penalty for fraudulently claiming the EIC is both a $$ penalty and disqualification for eligibility for the EIC for up to 10 years.

One thing, that may sav you... you asy that everything is tax deductible. That may not be entirely true... you may have the opportunity to legally elect to spread out the deduction over time ( depreciation). Consult a tax professonal. This is probably out of your league.

Hank Roitman, EA

Report your business income and expenses on your Schedule C of Form 1040. You can list all business related expenses. If you end up with a loss, it will be deductible. It's just not good to show consecutive losses year after year.

It's called having a loss - and you can deduct your business losses against your income - farmers do it all the time - for farmers it's schedule F, for business owners, it's whatever your business schedule is.

You don't turn in receipts, just put the total numbers on your schedule - you keep your receipts in a bushel basket in case you get audited, then just dump them on their desk, unsorted, of course!