What does this mean for his taxes

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Reference no: EM133378914

Question: Now that Dante's business is humming along with your help, he's started thinking about things from a new perspective. Understanding more about his business is helping him improve how he works and allowing him to more easily evaluate whether he needs to make changes. As a result, he's come up with some additional questions for you.

Because clothing and fashion are not only his life but also his business, the lines between the two are often blurred. As a result, Dante struggles with knowing what qualifies as a business expense versus a personal expense. After all, he buys clothes for himself, but he also wears them in his posts, videos and blog. So, would clothes be a business expense or a personal expense? Can he deduct some of them? A percentage of all of them? Or what?

Speaking of his wardrobe: Dante rarely wears an outfit more than a few times. So, considering he has limited space in his home to store them, Dante often sells his clothes online to make some of his money back-and so he can more easily walk through his apartment. Is this something that he needs to report as income? If so, how does this play into his income statement? Do you have any recommendations for how he can better incorporate this into his business model since it's somewhat time-consuming and doesn't add very much to his income?

And what about Dante's home? It's where his business is based. What does this mean for his taxes? What is he allowed to deduct? And how should he keep track of everything to make things as easy as possible for his taxes?

Reference no: EM133378914

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